Why are some Asian refiners requesting to pick up Saudi oil from Egypt’s Sidi Kerir instead of Yanbu?

Asian refiners are requesting alternative pickup locations like Egypt’s Mediterranean port of Sidi Kerir because recent Houthi militant attacks on tankers and energy infrastructure in the Red Sea have made shipping through that waterway extremely risky, leading many shipowners to refuse voyages to Yanbu — Saudi Arabia’s primary Red Sea export hub for Asian-bound crude.

What are the potential consequences for refiners who opt for Sidi Kerir instead of Yanbu for loading Saudi crude?

Refiners opting for Sidi Kerir face significantly higher logistics costs due to the need to ship crude around Africa to reach Asia, and at least one may skip its September monthly allocation entirely; additionally, while Aramco’s official September crude price discount applies only to Ras Tanura (Persian Gulf) loadings, supply loaded elsewhere — such as Sidi Kerir — incurs higher final prices because of added transportation expenses.

Asian Refiners Request Alternative Saudi Oil Pickup Locations Due to Red Sea Risks

Aug 16, 2026

Several Asian refiners have requested to collect Saudi Aramco cargoes from Egyptian ports instead of Yanbu due to Houthi attacks in the Red Sea, raising shipping costs and risking skipped allocations.

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