Saudi Arabia bypasses Hormuz, Yanbu oil exports soar to historic peak

Amid continued tension in the Middle East, Saudi Arabia is reshaping its crude oil export routes at an unprecedented pace.

Saudi Arabia has started large-scale use of the East-West pipeline, redirecting crude oil that previously exited via the Persian Gulf to the Red Sea port of Yanbu, thus bypassing the Strait of Hormuz. Ship tracking agency Kpler shows that since March, crude oil loading at Yanbu port has climbed to an average of about 3.4 million barrels per day, and this week peaked above 4.5 million barrels per day, with some days exceeding 5 million barrels, setting a historical record.

Kpler analysts Emmanuel Belostrino and Jashan Prema said, "This marks the entry of the Red Sea transport system into uncharted territory and underscores the scale of the route adjustment."

East-West pipeline running at full tilt, Yanbu exports double

Saudi Arabia began large-scale activation of the East-West pipeline early this month, transporting crude oil from eastern oil fields and processing centers along the Persian Gulf to the west coast Yanbu port. According to Kpler, the pipeline is designed with a capacity of about 7 million barrels per day, while Yanbu port's maximum loading capacity is estimated at about 4.5 million barrels per day.

Since the Strait of Hormuz was disrupted, in just over two weeks Saudi Arabia has doubled crude oil exports from Yanbu port. As of this week, the daily average shipment from Yanbu's north and south terminals is approaching 4.5 million barrels, nearing the port's physical limit.

In terms of flow, most of the exported barrels are still being sent east. Kpler data shows India and China together account for about half of Yanbu port shipments, with the two nations together receiving around 1.5 million barrels per day this month, replacing shipments previously loaded from Saudi ports facing the Persian Gulf.

Red Sea congestion becomes key bottleneck, delays up to five days

However, the rapid surge in exports is generating new logistical pressures. Kpler analysts note that currently over 30 oil tankers are waiting offshore near Yanbu port, a historic high, and this week's loading wait time has stretched to about five days.

Congestion at Red Sea ports is becoming a critical constraint in the rerouting plan. Though the East-West pipeline still has spare capacity, Yanbu port's loading limit of approximately 4.5 million barrels per day, compounded by a backlog of tankers, is significantly restricting the actual export volumes.

Despite Saudi Arabia's efforts to boost throughput at the alternative route, the overall supply gap is still hard to fully make up—the Strait of Hormuz previously handled about 15 million barrels per day, far more than any single alternative route's max capacity, further exposing vulnerabilities in the global energy supply chain.

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