Aramco lowers crude shipments to Asia for second straight month

Saudi Aramco has reportedly lowered crude shipments to Asia for the second consecutive month in April.

The state oil company is supplying only Arab Light crude to term customers through Yanbu port on the Red Sea next month, Reuters reported, quoting unidentified sources.

Aramco supplies to Asian refineries remain tight, which is leading to a restricted output of refined products within Asia.

Riyadh has exported 4.4 million barrels per day (bpd) of crude so far this month, compared to 7.1 million bpd in February, according to analytics company Kpler.

Tankers tracked by AGBI, using their automatic identification system data on the website MarineTraffic, indicate that Saudi Arabia may be exporting four times as much oil through the Red Sea as last month.

Following Iran’s near-closure of the strait on March 1, Aramco has sought to supplement its primary shipping route through which it exported more than 6 million bpd last year.

In response, its chief executive, Amin Nasser, said the company would begin pumping record amounts of crude from eastern oilfields to the western Red Sea coast, making 5 million bpd available for export, roughly 70 percent of its total pre-war shipments.

Meanwhile, Reuters reported that Nasser has cancelled his planned appearance at the CERAWeek energy conference in Houston amid the Iran conflict. However, the CERAWeek website still states Nasser will participate in a global energy dialogue at the event.

Organised by S&P Global, the conference is one of the world’s major annual energy events.

Further reading:

• Saudi Arabia expands shipping services via Red Sea
• Aramco oil exports spike after shift to Red Sea ports
• Aramco says Red Sea pipeline can sustain exports – with limits