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According to traders, crude oil shipments from Saudi Aramco to China will be approximately 40 million barrels. This is a reduction in volume from February's total shipment of 48 million barrels. In addition, India is expected to experience an additional drop in volumes coming from Saudi Arabia.
The anticipated decrease of crude exports going to two of Saudi Arabia's largest markets demonstrates the continuing impact of the ongoing conflict and increased costs of importing crude, as well as the need to find alternative barrels.
Due to disruptions at Hormuz, Saudi Aramco has taken action to transport some crude oil to an alternate port in Yanbu on the Red Sea instead of via the Barge in Spirit of Al Zaan.
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Yanbu's export capacity according to the brochure for Yanbu is only 5 million barrels per day, which is significantly less than the amount previously shipped by Saudi through their Gulf ports prior to armed conflict.
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Prior to the conflict the total amount being sent from the waterway was approximately 7.2 million barrels per day.
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The report states that shipments to India are projected to be approximately 23 million barrels for the upcoming period, based on shipper estimates and unnamed sources. A range of approximately 25 to 28 million barrels were previously expected.