Crude Trade Service

The Red Sea remains one of the critical global chokepoints for international trade. For oil, an average 8.5 million b/d of crude oil and refined products sail through the Red Sea according to our Vessel Tracking, Crude Trade Service and Refined Product Trade deliverables. However, the Israel-Gaza war has triggered Houthi attacks in the Red Sea on global shipping. Ships are diverting to southern Africa around the Cape of Good Hope, a longer route that adds as much as 16 days. In this Insight we highlight the impact on oil demand from the diversions around the Cape of Good Hope.

Saudi Aramco recently announced two major downstream deals to expand its presence in China. The company agreed to acquire a 10% interest in Rongsheng Petrochemical and planned to restart the construction of the Panjin integrated petrochemical plant through its HAPCO joint venture. The deals will see Saudi Aramco supply a total of up to 690 kb/d of crude over the long term to high chemical conversation assets. In this insight, we explore why it is a strategic move and do we expect more similar deals to emerge? What are the implications on the crude trade? We answer these questions with Wood Mackenzie's Crude Trade Service, Russia Waterborne Crude Service and REM-Chemicals service.