Saudi Arabia’s Yanbu diversion faces capacity, logistical hurdles

March 11, 2026 (MLN): Saudi Arabia is rerouting crude oil exports to its Red Sea port of Yanbu after flows through the Strait of Hormuz were disrupted by the ongoing conflict in the Middle East.

While the move aims to maintain deliveries to international customers, pipeline limitations and Yanbu’s port capacity mean the shift can only partly compensate for the halted Hormuz shipments, which normally carry about 14 million barrels per day (b/d) of Gulf crude.

The regional conflict has forced Saudi Arabia and other Gulf producers to curtail some oil production due to limited storage options and fewer alternative export routes.

Saudi Aramco CEO Amin Nasser described the situation as "the biggest crisis the region's oil and gas industry has faced." To ease the impact, Aramco plans to fully utilize the 7 million b/d East–West pipeline connecting the kingdom’s eastern oil fields to Yanbu, allowing the company to fulfill most customer commitments, according to an update by Argus Media.

However, the Red Sea route faces several bottlenecks. Yanbu’s terminals have a combined nominal loading capacity of about 4.5m b/d, with effective throughput estimated around 4m b/d far short of replacing Hormuz flows.

Current port storage is only partially filled, and some crude grades cannot be handled at Yanbu.

Exports must also navigate complex shipping routes: crude headed to Europe can pass through Egypt’s Sumed pipeline, but Asia-bound shipments may need to sail around the Cape of Good Hope, increasing costs and transit times.

Additional risks come from the Bab el-Mandeb Strait, where tensions with Yemen’s Houthi militants threaten Asia-bound deliveries.

Despite these challenges, Aramco is prioritizing Arab Light and Arab Extra Light grades for export from Yanbu, aiming to sustain the flow of oil to key markets while navigating the region’s logistical constraints.

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