According to sources familiar with the matter, April allocations to Asian refiners have been scaled back, with the company supplying only its flagship Arab Light crude grade shipped from the Red Sea port of Yanbu. The move comes as trade flows through the Strait of Hormuz remain disrupted following the U.S.-Israeli war with Iran, a key chokepoint for global oil transportation.
The constrained supply is expected to keep feedstock tight for Asian refineries, potentially limiting their refined fuel output at a time of steady regional demand.
While Aramco did not immediately respond to requests for comment, shipping data from analytics firm Kpler indicates a notable decline in Saudi crude exports. So far in March, exports have averaged about 4.36 million barrels per day, significantly lower than February’s 7.11 million bpd.
In response to the Hormuz disruption, Saudi Arabia has been redirecting more exports through Yanbu in an effort to maintain supply flows. Loadings from the Red Sea terminal are reportedly rising and could reach record levels this month. Among key buyers, China’s largest refiner, Sinopec, is expected to lift around 24 million barrels of Saudi crude from Yanbu in March alone.
However, operations at the port have not been entirely smooth. A brief disruption occurred last week after a drone incident near Aramco’s SAMREF refinery temporarily affected loading activities, underscoring the fragile security environment surrounding critical energy infrastructure in the region.
The evolving situation highlights how geopolitical risks are increasingly shaping global oil supply chains, with Asian markets particularly exposed to shifts in Middle Eastern export routes.