Saudi Arabia boosted shipments of domestic crude oil to overseas storage facilities outside of the Strait of Hormuz last month amid heightened security concerns stemming from the Israel-Iran conflict (MEES, 4 July). The Kingdom also increased flows through its 5mn b/d East-West crude oil pipeline in order to facilitate the potential need for increased exports from the Red Sea port of Yanbu to bypass Hormuz in the event of disruption to trade flows through the chokepoint.
According to an informed source, Saudi Arabia’s crude output rose above its voluntary Opec+ target of 9.37mn b/d in June. However, the additional barrels were not marketed, but rather stored domestically or re-routed for logistical optimization, with supplies to customers still curtailed. (CONTINUED - 173 WORDS)