Sources say Saudi Aramco is supplying Asian refiners with Arab medium and heavy crude for September loading. Previously, Saudi Aramco had also diverted some Arab light crude for export to the Red Sea port of Yanbu and had sourced crude from Egypt's Sidi Kerir port in the Mediterranean to bypass the risks of shipping through the Strait of Hormuz and the Red Sea. A report on August 20 stated that Saudi Aramco had sold at least 4 million barrels of crude to Asian countries that did not require loading through ports in the Strait of Hormuz.
This indicates that Saudi Arabia is undergoing a very clear strategic adjustment: exports from the eastern Persian Gulf – blocked by the Strait of Hormuz – Yanbu + Egypt's Sidi Kerir + Fujair/Sohar STS + other alternative routes – to maintain Asian supply as much as possible. Therefore, Saudi Aramco's proactive search for ways to bypass risky shipping routes is actually to avoid a very dangerous outcome: once Asian refineries adapt to non-Middle Eastern crude, Saudi Arabia may find it difficult to quickly regain lost market share in the future.
