Asian Refiners Push Aramco for Egyptian Pickups as Yanbu Loadings Sink 41%
At least two refiners have asked to shift cargo pickups from the Red Sea to Sidi Kerir as Aramco weighs a separate Mediterranean official selling price.
At least two Asia-based refiners asked Saudi Aramco in mid-August (2026-08-17) to shift their crude cargo pickups from Yanbu on the Red Sea to Sidi Kerir, Egypt's Mediterranean terminal, according to trading sources cited by Bloomberg. The request signals growing commercial anxiety about conditions at Bab el-Mandeb, the southern Red Sea chokepoint where Houthi militants have been targeting Saudi exports.6
Yanbu loadings had already fallen to around 2.39 million barrels per day by June — a 41% drop from the March peak and a 66% decline from combined Saudi export volumes of roughly 7.96 million bpd across Gulf and Red Sea terminals in January, OilPrice.com reported. Saudi Arabia had redirected virtually all of its crude exports through the East-West pipeline to Yanbu after initial Strait of Hormuz disruptions, making the Red Sea corridor its primary export artery. The subsequent compression of that route has put the kingdom's logistics under strain.4
Most Chinese, Indian, and Taiwanese refiners were still being directed to load at Yanbu as of mid-August (2026-08-17), Bloomberg's sources said. The two refiners seeking Sidi Kerir pickup represent a minority of Asian buyers for now, reflecting divided views about how durable the Red Sea hazard will prove.6
Shipowners are already adapting in the near term. Sinokor Group and other tanker operators have been shuttling Saudi crude northward through the Red Sea to avoid the Bab el-Mandeb approach, where Houthi militants have concentrated their targeting, Rigzone reported on August 21 (2026-08-21). The northern corridor is safer but longer, and its continued viability depends on conditions in the broader Red Sea holding.7
Saudi Aramco has been considering a more structural response. The producer told at least two Chinese refiners it may introduce a separate official selling price for oil shipped from Sidi Kerir, trading sources told Bloomberg in late July (2026-07-29). Aramco had not finalized the details, including a starting date, the traders said. A dedicated Sidi Kerir OSP would price in the longer haul to Asia via the Cape of Good Hope or through the Suez Canal rather than down the Red Sea, formalizing the Mediterranean route as a distinct commercial product.5
The SUMED pipeline, which runs from Ain Sokhna on the Egyptian Red Sea coast to Sidi Kerir on the Mediterranean, can handle around 2.5 million barrels per day at full capacity, Cryptobriefing reported. That is a meaningful ceiling. If the Mediterranean route were to absorb broad Asian demand, SUMED throughput alone could not cover the full Yanbu shortfall.3
ICE Brent crude front-month was at $104.32/bbl as of September 13 (2026-09-13). That is above the roughly $98 level Brent crossed in late July (2026-07-23) when rerouting negotiations first gained public attention, though the gain since then amounts to less than 7%. Saudi Arabia's redirect of exports through the East-West pipeline and the northward tanker shuffles have together kept significant volumes flowing, muting some of the supply shock. The Strait of Hormuz moved an average of 21 million barrels per day in 2022, according to EIA data, which explains why Saudi Arabia could not simply revert to Gulf loadings once that corridor came under threat.3,4,1
MarineTraffic's analyst said on July 22 (2026-07-22) that the risk picture at Bab el-Mandeb "is deteriorating." If Houthi activity translates into a sustained naval blockade, Asia stands to lose a major crude supply artery with limited short-term alternatives, the analyst added. At 2.5 million bpd, the SUMED pipeline could absorb only a fraction of Yanbu's pre-disruption volumes.2,4,3
Aramco's pricing decision on Sidi Kerir cargoes, when it arrives, sets the commercial basis for how broadly Asian buyers can justify switching away from Yanbu. Until that mechanism exists, refiners requesting Egyptian pickup are doing so without a published price reference for the longer voyage — leaving the economics of the route unresolved on both sides of the trade.5