Saudi Arabia nears restart of Yanbu crude shipments to Asia

Traders Union
All News
Geopolitics & Trade
Saudi oil flows from Yanbu near restart

Highlights

Asian refiners may soon resume crude loadings from Yanbu.
The East-West pipeline carried about 4 million barrels a day.
Reopening Yanbu could reduce reliance on the Strait of Hormuz.

Saudi Aramco has informally told at least three Asian refiners that they should soon be able to collect crude from Yanbu, although no firm timetable has been provided, according to Bloomberg. Some buyers have already missed scheduled loading dates and have tankers waiting near the port or heading toward it.

Yanbu route moves closer to reopening

Oil flows through Yanbu were largely halted after the East-West pipeline was attacked on Sept. 10. The pipeline had been carrying roughly 4 million barrels a day toward the Red Sea before the closure, making it an important alternative to Saudi export terminals in the Persian Gulf.

Saudi Arabia had been working to restore about half of the pipeline capacity within days, although Aramco has not provided a fresh public update on the repair schedule.

The shutdown forced the kingdom to redirect more crude toward Ras Tanura in the Persian Gulf. Asian buyers were able to collect some of those barrels through ship-to-ship transfers in the Gulf of Oman after tankers passed through the Strait of Hormuz.

That solution preserved supplies, but it increased reliance on a shipping route already exposed to geopolitical and security risks.

European buyers remain more exposed

The disruption has had a larger impact on European customers. At least two European refiners were told they would receive no Saudi crude under long-term contracts in October, with the reduction applying more broadly to buyers across the region.

Yanbu is especially important for westbound shipments because its Red Sea location allows Saudi crude to reach European markets without first traveling through the Strait of Hormuz.

For Asian refiners, the expected return of Yanbu loadings adds flexibility rather than replacing Persian Gulf exports entirely. Restoring multiple export routes would give Aramco more room to manage deliveries if security conditions deteriorate again.

Asia oil market gets some supply relief

A restart at Yanbu could ease logistical pressure on Asian refiners by reducing dependence on alternative loading arrangements and giving Saudi Arabia more options for moving crude. The development does not remove the broader geopolitical premium, however, because regional shipping routes remain vulnerable to further disruptions.

Oil futures were still trading higher in the latest market data provided. November Brent futures stood at $101.64 a barrel, up 1.30%, while November WTI futures traded at $93.23, up 0.93%. The gains suggest traders are still pricing in supply risk even as prospects improve for a partial restoration of Saudi export capacity.

We have previously highlighted that Trump escalates Iran threats as Tehran warns of regional retaliation.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.