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Saudi Arabia's $5 Oil Detour Is Expensive... But Worth It

Saudi Arabia's $5 Oil Detour Is Expensive... But Worth It Authored by Leon Stille via OilPrice.com, Rerouting Saudi crude to Asia via Yanbu, Egypt’s SUMED pipeline and the Cape of Good Hope may add around $5 per barrel and up to four weeks to a voyage. That premium is small compared with the economic damage caused by losing access to Hormuz or Bab el-Mandeb altogether. Saudi Arabia’s alternative export infrastructure is not a temporary workaround but a strategic asset—although it cannot replace the kingdom’s wider need to diversify beyond oil. The latest Saudi oil...
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