Saudi Arabia considers increasing crude prices for Asian buyers to offset higher shipping costs from Red Sea disruptions.
Saudi Aramco is weighing a $5 per barrel increase in crude prices for Asian customers due to rising shipping costs. The adjustment follows the need to reroute oil shipments from the Red Sea port of Yanbu to Egypt’s Ain Sukhra, then via the Suez-Mediterranean pipeline to Sidi Kerir for onward transport to Asia.
The potential hike reflects increased logistical expenses amid Houthi-led maritime blockades in the Red Sea. Aramco has not yet finalized the decision, but the move would mark a significant shift in pricing dynamics for key Asian markets.
No immediate market reaction was reported, though the adjustment could tighten supply costs for refiners in China, India, and other major importers.