Saudi Crude Exports Drop as Red Sea Route Faces Houthi Threats

Saudi Arabia's crude shipments declined by 460,000 barrels per day in July, dropping to 4.19 million bpd. The 746-mile East-West pipeline, which carries crude from eastern oil fields to the Red Sea port of Yanbu, serves as a critical alternative to the Strait of Hormuz.

Yanbu now faces fresh risks after Yemen's Houthis pledged to blockade Saudi ports and claimed attacks on Saudi vessels and energy facilities last month. These threats add to existing uncertainty around the Kingdom's export infrastructure.

Tracking exports from Yanbu has become more challenging as vessels increasingly switch off their transponders. However, satellite imagery over the weekend showed six very large crude carriers loading at the port, suggesting shipments may be picking back up. Saudi crude export flows remain highly volatile.