Saudi Aramco is set to reduce crude shipments to Asia’s two largest importers
next month, with flows to China expected at about 40 million barrels in April
versus 48 million in February, and India also seeing lower allocations. The cuts
reflect ongoing disruption from the Middle East conflict involving the US,
Israel and Iran, which has tightened global supply and pressured the Strait of
Hormuz. Some volumes are being rerouted through Saudi Arabia’s Red Sea port
Yanbu via an internal pipeline, though its capacity is limited at around 5
million barrels per day and only certain crude grades are available. The
reductions add to concerns over higher import costs and broader inflation risks,
with analysts warning markets may be underestimating the economic impact of the
conflict.
