Asian refiners, awaiting word on Saudi shipments, expect tighter supply

Business Recorder reported that Asian refiners are preparing for tighter supplies of sour crude while they wait for direction from Saudi Arabia on Red Sea exports. The concern follows an attack on Friday that led Saudi Arabia to shut the East-West Pipeline, a move that drove oil up 3% on Monday. The kingdom has yet to say how long repairs could take.

Sources at several Asian refineries said Saudi Aramco has not shared any news on how supplies will be allocated or when vessels will sail. One refinery was told loading will be delayed but received no new date, while three others have not been told whether Yanbu cargoes will be delayed or suspended. One refiner warned that buyers will pay higher prices as they chase limited barrels from Iraq, the UAE and others.

ANZ analysts noted that Yanbu flows fell in July to 500,000 to 1 million barrels daily, down from around 6 million in June after the Houthis announced a blockade. Vortexa analyst Emma Li said the effect on China is indirect because its refiners have not loaded at Red Sea ports since August, while the shutdown has pushed tanker freight from the Gulf to Asia to record highs.