"While we have faced disruptions in the past, this one by far is the biggest crisis the region's oil and gas industry has faced. Aramco has been unable to ship crude cargoes out of the Gulf due to the disruption, but it hopes to meet customer demands by flowing crude through the east-west pipeline to the Red Sea port of Yanbu where it could be shipped to buyers."
"Oil shipments from the Middle East have been blocked from passing through the narrow waterway since the US strikes on Iran 11 days ago, erasing about 20m barrels of oil from the global market every day. Typically about 100 tankers a day pass through the narrow waterway lying south of Iran, but the number has dwindled to single digits after the Islamic Revolutionary Guard Corps threatened to set ablaze any vessel using the trade route."
"The company plans to ramp up shipments through the pipeline to reach its full capacity of 7m barrels a day in the next couple of days. About 2m barrels a day will be sent to Saudi Arabia's refineries in the west of the country, leaving 5m barrels a day for the global crude market. This represents about 70% of the kingdom's usual exports."
Saudi Arabia's state oil company Aramco has issued warnings about severe consequences for global oil markets due to ongoing disruptions in the Strait of Hormuz caused by the US-Israeli conflict with Iran. The blockade has eliminated approximately 20 million barrels daily from global markets. Aramco plans to mitigate impacts by routing crude through its east-west pipeline to the Red Sea port of Yanbu, aiming to maintain 70% of normal exports. The company expects to reach full pipeline capacity of 7 million barrels daily within days, with 5 million barrels destined for global markets and 2 million for domestic refineries. Tanker traffic through Hormuz has collapsed from 100 daily vessels to single digits following Iranian threats. Aramco is supplementing supplies using stored crude reserves, though these cannot sustain prolonged disruptions.
Read at www.theguardian.com
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