Despite Ongoing Threats, Saudi Aramco Continues Oil Transport Through Red Sea

26 January

Despite the ongoing attacks by Yemen's rebel Ansar Allah movement (Houthis) on merchant ships, Saudi oil giant Saudi Aramco has maintained its oil transportation through the Red Sea, according to Mohammed Al-Qahtani, the head of the company's downstream divisions.

 

Al-Qahtani confirmed to Bloomberg News that Saudi Aramco uses the Red Sea to transport oil and oil products. However, he acknowledged that the current situation in the Red Sea has negatively impacted the number of vessels available for this route and has increased insurance costs. "While it is affecting the cost of these shipments due to the current circumstances, it is still manageable," he said.

 

Saudi Arabia's geographical location, bordered by the Red Sea to the west and the Persian Gulf to the east, does not allow Saudi Aramco to bypass this route, even amidst the risks posed by the current situation.

 

Bloomberg's data on ship routes also confirms the continuation of oil transportation through the Red Sea. According to the data, in the first half of January, the company shipped as much oil from its terminal in the Saudi city of Yanbu to Europe as it did in the entire month of December 2023.

 

In response to the escalation of the conflict in the Gaza Strip, the Houthis have threatened to strike Israeli territory and prevent ships linked to it from passing through the waters of the Red Sea and the Bab el-Mandeb Strait until the operation in the Palestinian enclave ends. Since mid-November last year, Yemeni rebels have attacked several dozen civilian vessels and ships. The US and Britain have launched strikes on the Houthis' positions in Yemen.

 

 

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Based on materials from TASS