Saudi Arabia is set to reduce crude shipments to its two largest Asian customers next month as war in the Middle East continues to disrupt regional energy flows, according to a Bloomberg report Thursday.
State oil giant Saudi Aramco is expected to ship about 40 million barrels of crude to China in April, down from roughly 48 million barrels in February, traders familiar with the matter said. Shipments to India are also projected to decline.
The conflict involving the United States, Israel and Iran has tightened global oil markets, with attacks on energy infrastructure and severe disruption in the Strait of Hormuz constraining key export routes from the Gulf.
The expected drop in Saudi crude exports highlights the broader economic impact of the war, as major importers face higher prices and seek alternative supplies.
In response, Saudi Aramco has redirected part of its exports through a pipeline to Yanbu, a Red Sea port. However, the rerouting offers limited relief.
Yanbu's export capacity is estimated at about 5 million barrels per day, below the roughly 7.2 million barrels per day Saudi Arabia shipped last month, mostly from Gulf terminals. Traders said crude available to Asian buyers via Yanbu is limited to Arab Light.
Exports to India are expected to total around 23 million barrels in April, slightly below recent levels. February shipments were estimated at 25 million to 28 million barrels, according to market data firms.
Saudi Arabia has allowed long-term customers to lift cargoes from Yanbu instead of Gulf ports, while at least two European refiners have seen April volumes reduced, with one receiving no shipments.
Brent crude futures rose more than 2% to above $104 a barrel on Thursday, compared with about $72 before the conflict began.
