business ⛽ Saudi oil route takes a massive detour
Saudi Arabia has implemented a complex $5 per barrel oil detour to bypass volatile shipping chokepoints. This new route moves crude from the kingdom west to Yanbu, then through Egypt and the Mediterranean before sailing around Africa to Asia. The journey can extend from about 19 days to 48 days, significantly increasing fuel and canal fees. Aramco is considering a separate pricing mechanism for crude loaded at Sidi Kerir to reflect these logistics costs. This extra cost is seen as insuring against major supply disruptions, making redundancy valuable. ⛽