Red Sea Disruption Reopens Midland-to-Asia Crude Arb

Ongoing disruptions in the Red Sea are reshaping global crude oil flows, leading to a reopening of the Midland-to-Asia crude arbitrage. Insurers are canceling coverage, and Mediterranean owners are demanding higher premiums for voyages east of Suez. This situation could redirect Saudi crude barrels normally bound for Asia through the SUMED pipeline into the Mediterranean, adding supply there while halted CPC loadings remove approximately 800,000 barrels per day of sour crude.