Saudi Aramco is considering a
new pricing mechanism for crude loading from Egypt’s Sidi Kerir
port for Asia to reflect higher shipping costs after re-routing
exports through the Suez Mediterraneanpipeline, three sources
with knowledge of the matter said on Tuesday.
Saudi Aramco declined to comment.
Yemen’s Iran-aligned Houthis imposed a naval blockade on
Saudi oil shipments through the Red Sea’s Bab el-Mandeb strait
last week, forcing the world’s top exporter to divert more
supply for exports via Egypt.
Since the start of the U.S.-Iran war which prevented ships
from entering the Gulf via the Strait of Hormuz, Saudi Aramco
has been exporting most of its crude from the Red Sea port of
Yanbu to Asia, diverting supply from Ras Tanura using its
east-west pipeline.
The Yanbu cargoes are sold to term customers based on its
monthly official selling price (OSP) for Asia plus a pipeline
fee.
Following the Houthis’ threat, Saudi Aramco will now ship
oil from Yanbu to Egypt’s Red Sea port of Ain Sukhna which is
then carried by the Suez-Mediterranean Pipeline to Sidi Kerir.
With the latest diversion, the producer could adjust its
pricing to take into account higher freight costs and a longer
route via the Mediterranean and Gibraltar and then around the
Cape of Good Hope, another three sources said.
One of the sources estimated that this could cost Asian
buyers about $10 million extra per shipment, or $5 a barrel.
Published on July 28, 2026
