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Asian Buyers Talk to Saudi Aramco on Red Sea Rerouting

Bloomberg Markets •
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At least two Asian crude oil buyers are in talks with Saudi Aramco to potentially reroute flows around Africa after Houthi attacks on tankers in the Red Sea, according to traders familiar with the matter.

The discussions reflect growing concern over the security of the vital Red Sea shipping corridor, which handles roughly 12% of global seaborne oil trade. Houthi militants in Yemen have targeted commercial vessels since November, prompting major shipping lines to divert around the Cape of Good Hope.

Rerouting adds 10-14 days to voyages from the Middle East to Asia, increasing freight costs and delaying deliveries. Saudi Aramco, the world's largest crude exporter, is a key supplier to Asian refiners including those in China, India, Japan, and South Korea.

Traders said the talks are preliminary and no final decisions have been made. Any large-scale shift would tighten tanker availability and could support crude prices amid ongoing OPEC+ supply cuts.