Under Threat, Saudi Arabia Reroutes Oil Exports Yet Again - The New York Times
Under Threat, Saudi Arabia Reroutes Oil Exports Yet Again - The New York Times
Source: The New York Times
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DW NOTE
Saudi Arabia has now rerouted its oil exports three times since February — first around Houthi-controlled waters, then around the Red Sea entirely, now around Hormuz. Each reroute adds 10-15 days of transit time and locks up another cohort of tankers that could be moving oil elsewhere. The kingdom is not diversifying risk; it is compounding it. Every additional day at sea is a day of inventory that cannot respond to price signals, and every tanker on a three-week detour is a tanker unavailable for spot arbitrage. The global oil market is not shorter by 4.3 million barrels per day because production collapsed — it is shorter because the fleet is steaming in circles.