Unipec Loads 24 Million Barrels of Saudi Oil from Yanbu

In Singapore, recent shipping data indicates that China Petroleum & Chemical Corporation, the refining giant also known as Sinopec, is set to load approximately 24 million barrels of crude oil from the Red Sea port of Yanbu. This move comes as the Saudi Arabian Oil Company shifts export volumes away from the Strait of Hormuz due to heightened regional tensions. Unipec, the trading arm for Sinopec, has reportedly chartered 12 Very Large Crude Carriers to manage these shipments, with the initial loading occurring between March 10 and 12. This logistical shift equates to a daily flow of roughly 1.14 million barrels during the loading window.

The redirection of oil supplies is a direct consequence of the ongoing conflict involving the United States, Israel, and Iran. This war has effectively closed the Strait of Hormuz, a vital passage for nearly half of the crude oil imported by China. As a result, Sinopec has begun scaling back its refinery operations to mitigate supply risks. The impact of these maritime disruptions extends beyond energy, affecting the broader global supply chain for major consumer goods firms such as Colgate-Palmolive Company, which face increased logistics costs and shipping delays.

To facilitate this bypass, Saudi Arabia has significantly increased pipeline flows to its western coast. Exports from Yanbu reached an average of 2.6 million barrels per day in March, a twofold increase from the volumes seen in the first two months of the year. However, traders point out that the supply from Yanbu consists primarily of Arab Light crude. This leaves Sinopec and other refiners in a difficult position as they search for the heavier crude grades that many of their processing plants are designed to handle.