Two Saudi Crude Tankers Reverse Course in Red Sea After Houthi Warning
Summary
- Two tankers carrying Saudi crude oil reversed course in the Red Sea after Yemen’s Houthi rebels warned of a maritime blockade.
- A VLCC and an Aframax tanker that left Saudi Arabia’s western port of Yanbu changed course toward the Suez Canal instead of continuing through the Red Sea, a move that could add several weeks to shipping times.
- The Houthi blockade is beginning to disrupt Saudi crude shipments, raising the prospect of greater use of the SUMED pipeline and showing early signs of an impact on actual Saudi oil transport.
Forecast Trend Report by Period
Two tankers carrying Saudi crude reversed course in the Red Sea, one day after Yemen’s Houthi rebels warned they could attack ships using Saudi ports.
Reuters, citing ship-tracking data from the London Stock Exchange Group on July 21, reported that the two vessels had been sailing south in the Red Sea toward China and India before turning around and heading north toward the Suez Canal.
One of the ships, the very large crude carrier Shin Long Yang, had loaded 2 million barrels of crude at Yanbu, Saudi Arabia’s western port, the previous day and was bound for China. It turned back before leaving the Red Sea and headed toward the Suez Canal. The Rhodes, an Aframax tanker carrying about 700,000 barrels of Saudi crude to India, also reversed course the same day. Together, the two vessels were transporting 2.7 million barrels of oil.
Another VLCC, the New Prime, had been due to arrive at Yanbu later this week to load crude. It also turned back near Oman before entering the Red Sea.
The Houthis declared a “maritime blockade” against Saudi Arabia the previous day. In an email to shipping companies, the group said any vessel loading or unloading cargo at Saudi ports would be a prohibited target and could be attacked “anywhere” within its operational range.
Yanbu, on the Red Sea coast, is a key alternative route for exporting Saudi crude without passing through the Strait of Hormuz. But Yemen’s northern coast, controlled by the Houthis, faces the Bab el-Mandeb Strait, the southern gateway to the Red Sea.
That means ships carrying Saudi crude that avoid the Bab el-Mandeb and instead head for the Suez Canal would have to cross the Mediterranean, pass through the Strait of Gibraltar and sail around Africa’s southern tip to reach Asia. Shipping times could be extended by several weeks.
Reuters said Aframax tankers can pass through the Suez Canal while still carrying crude. Larger VLCCs, however, would have to unload their cargo so it could be transported through the SUMED pipeline to the Mediterranean.
The tankers’ course changes suggest the Houthi blockade threat is beginning to affect vessel movements and Saudi crude shipments.
Park Su-bin, Hankyung.com reporter waterbean@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.