Saudi Aramco has curtailed crude oil allocations to Asian refiners for April for the second month in a row, while rerouting supplies through the Red Sea, according to a Reuters report.
Sources told Reuters that the Saudi producer is offering only its benchmark Arab Light grade to term buyers, with cargoes being loaded from the Red Sea port of Yanbu instead of terminals in the Gulf.
The change in routing reflects efforts to avoid the Strait of Hormuz, where ongoing disruptions have affected tanker movement, but has resulted in tighter availability for refiners in Asia.
Export volumes have also declined. Saudi shipments averaged about 4.35 million barrels per day (bpd) in March so far, compared with 7.1 million bpd in February, as per Kpler.
At the same time, loadings from Yanbu are increasing, with shipments from the Red Sea port expected to reach record levels, Reuters reported.
China’s state-run refiner Sinopec is expected to lift around 24 million barrels of Saudi crude from Yanbu this month, indicating a shift in trade flows as producers adjust to supply constraints.
