Saudi Arabia to Cut Oil Supplies to India and China in April; Turkish Media: Oil Tanker Carrying 140,000 Tons Attacked by Drones Near Turkey's Coast
Bloomberg reports that due to the closure of the Strait of Hormuz caused by Middle East conflict, leading to disrupted oil supplies, Saudi Arabia will reduce its oil sales to Asia’s two largest countries next month. The report cites traders stating these two nations are India and China.
The article notes: “Due to energy market disruptions caused by the war in the Middle East, Saudi Arabia’s oil exports to Asia’s two major importers will be lower than usual next month.”
Bloomberg cited informed traders who said Saudi Aramco, Saudi Arabia’s state-owned oil and gas company, will export approximately 40 million barrels of oil to China in April. This amount is below the usual level—China’s imports from the company reached 48 million barrels in February.
The article also indicates that traders expect crude exports to India next month may drop to around 23 million barrels, similarly below levels seen in previous months. According to data from Kpler Ltd. and Vortexa Ltd., as cited by Bloomberg, oil exports to India in February were estimated at between 25 million and 28 million barrels.
Due to transportation disruptions in the Strait of Hormuz, Saudi Aramco has rerouted some oil shipments via pipelines across the Arabian Peninsula to Yanbu Port on the Red Sea coast. However, the report notes this only partially resolves the issue.
Yanbu Port’s export capacity is currently about 5 million barrels per day, lower than the 7.2 million barrels per day exported from Persian Gulf facilities a month before the outbreak of the Middle East conflict. According to trader data cited by Bloomberg, only Arab light crude is currently being shipped through Yanbu Port to Asian refineries.
On February 28, the United States and Israel launched multiple strikes against targets inside Iran, including attacks on Tehran, causing damage and civilian casualties. In response, Iran carried out retaliatory missile strikes targeting Israeli territory and U.S. military installations in the Middle East. The Strait of Hormuz has effectively been blocked, and since it is a critical passage for Gulf states to deliver oil and liquefied natural gas to global markets, fuel prices have risen across most countries.
Saudi Aramco is Saudi Arabia’s state-owned oil and gas company, established in 1933. The company operates across three major global energy markets: Asia, Europe, and North America.
According to Turkey’s NTV television station, a tanker belonging to Turkey’s ALTURA company, carrying 140,000 tons of oil, was attacked by an unidentified drone in the Black Sea near the country’s coastline, resulting in damage to the vessel. The crew has requested assistance.
The report states: “A tanker belonging to Turkey’s ALTURA company was hit by a drone in the Black Sea, 15 nautical miles from the Bosporus Strait, resulting in a violent explosion. The tanker carried 140,000 tons of oil.”
According to NTV, the crew has requested help, and both the bridge and engine room of the ship have been damaged. The crew consists of 27 Turkish nationals, all of whom are unharmed.
Original source: toutiao.com/article/1860707596441664/
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