The Houthis attack on the Red Sea ship triggered a chain reaction, and Asian crude oil buyers discussed a detour plan with Saudi Aramco

The Zhitong Finance App learned that, according to reports, a number of informed traders revealed that after the Houthis attacked the Red Sea tanker, at least two Asian crude oil buyers were discussing with Saudi Aramco whether to divert their transportation routes around Africa.

Traders said refiners are considering alternatives to avoid the Mander Strait, the main thoroughfare at the southern tip of the Red Sea. These plans may include taking oil from Egypt's Mediterranean port of Sidi Kerir instead of Saudi Arabia's Red Sea hub Yanbu.

Traders said that if Asian buyers want to receive crude oil in the Mediterranean region, one solution is for Saudi Aramco to first transport crude oil from Yanbu Port to Egypt's Red Sea port Ain Sokhna, and then transport it north through oil pipelines. Another solution is for the buyer to be responsible for the logistics within Egypt after picking up the goods in Yanbu.

Traders said negotiations are still ongoing and no final decisions have been made. Saudi Aramco declined to comment on the matter.

If the original plan was to be rerouted on a shorter route to Asia via the Red Sea or the Strait of Mander, it would need to go through Egypt and then bypass South Africa, and the voyage would be longer. Traders said this could extend the transit time by as much as a month.

The Houthis in Yemen, supported by Iran, claim to have attacked two oil tankers in the Red Sea, causing the global oil market to face new turmoil. The attack further amplified the risk of energy transportation in the Middle East. As a result of the US-Iran conflict, millions of barrels of crude oil were unable to pass through the Strait of Hormuz, and the Red Sea route has always been an important alternative transportation route.

Crude oil futures prices rose on Thursday as traders began to reassess the ripple effects of the Red Sea attacks. The price of Brent crude oil surpassed $98 per barrel and has risen by more than one-third so far this month.

Saudi Arabia usually sells oil to customers west of the Suez Canal through Egypt. Large crude oil carriers with a full load cannot pass through the Suez Canal, so Saudi Arabia prefers to use small ships or pipelines for transportation.

As of press release, the price of WTI crude oil rose 3.81% to $90.14 a barrel; the price of Brent crude rose 4.41% to $98.22 a barrel.