Oil jumps 2% as Saudi attacks threaten Hormuz supply recovery
Oil prices rose about two percent on Monday as fresh attacks on Saudi Arabia and tankers near the Strait of
Saudi Arabia is planning to expand its oil export routes to reduce its dependence on the Strait of Hormuz, according to Energy Minister Prince Abdulaziz bin Salman. The country is converting a gas pipeline to carry crude oil, which could transport up to 1 million barrels per day within eight weeks, and potentially 3 million barrels with additional investment.
The government, not Aramco, is currently financing this expansion. The move is driven by the urgency of global oil supply strains due to conflicts in the Middle East and Ukraine, with Goldman Sachs forecasting higher oil prices. However, Iran is unlikely to remain passive as new export routes develop, according to experts at the Center for Strategic and International Studies.
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- Saudi plans to expand oil export routes to cut Hormuz reliance semafor.com
- Saudi Aramco studying new crude export routes, overseas storage expansion middleeasteye.net
- Saudi Aramco studying new crude export routes, overseas storage expansion gulf-times.com
- Saudi Aramco studying new crude export routes, overseas storage expansion thehindubusinessline.com
