Saudi Arabia is rerouting its oil exports to Asia via Yanbu, Egypt's SUMED pipeline, and around the Cape of Good Hope. This may add around $5 per barrel and up to four weeks to the voyage:
This new route is not just a temporary workaround but a strategic asset that allows Saudi Arabia to avoid the economic damage caused by the closure of Hormuz and Bab el-Mandeb:
Aramco is now considering different pricing mechanisms as the oil prices no longer reflect the new logistics:
This $5 is not only the cost of disruption but also the price of having an alternative:
