Saudi Arabia ramps oil exports through Mediterranean pipeline to avoid attacks in Red Sea

• Saudi exports through the Red Sea's Bab el-Mandeb Strait plunged nearly 90% to 1.3 million barrels in early August compared to 11 million barrels before the Houthi embargo declaration on July 20
• The Mediterranean route via Egypt's Sumed pipeline adds approximately 25 days to shipping times for Asian customers, making it cost-prohibitive and causing cargo resales to European and U.S. buyers instead
• The rerouting creates a domino effect in global oil flows, with Europe receiving more Saudi crude while West African crude typically destined for Europe may redirect to Asia

Summary: Saudi Arabia Reroutes Oil Exports Through Mediterranean Pipeline

Key Development:

Saudi Arabia has dramatically increased oil exports through Egypt's Sumed pipeline to avoid Houthi attacks in the Red Sea. Exports from Egypt's Sidi Kerir Mediterranean port surged to approximately 2.3 million barrels per day (bpd) in August, more than doubling from 1 million bpd in July, according to Kpler data.

Strategic Shift:

The Houthis, Iranian-backed militants, declared a maritime embargo on Saudi Arabia, forcing Riyadh to abandon its traditional Red Sea shipping routes through the Bab el-Mandeb Strait. Saudi exports through Yanbu port plummeted nearly 90% to 1.3 million barrels during the week of August 3, compared to 11 million barrels on July 20 when the embargo was declared.

Operational Details:

The Sumed pipeline connects the Red Sea port of Ain Sokhna to Sidi Kerir on the Mediterranean. Supertankers offload half their cargo into the pipeline, transit the Suez Canal, then reload at Sidi Kerir. Saudi Aramco CEO Amin Nasser confirmed the kingdom has "multiple access routes and alternative pathways" to markets.

Market Implications:

• The rerouting represents a "distinct change in strategy," not a temporary measure
• Journey to Asian customers now takes approximately 25 days longer around Africa
• Most Mediterranean exports are heading to U.S. and Europe instead of Asia, as Asian buyers find the longer route economically unviable
• This creates a "domino effect" potentially redirecting West African crude from Europe to Asia
• Risks remain: Drone strikes hit Egypt's Port of Damietta on July 30

Company: Saudi Aramco is the primary entity affected by these geopolitical disruptions to critical Middle Eastern oil chokepoints.