Saudi Arabia turns to loans amid falling oil exports, Yemeni blockade

REPORT, Aug. 31 (YPA) – Western reports have revealed growing pressure on Saudi Arabia’s oil and refined product exports, driven by the ongoing Yemeni naval blockade.

The situation has complicated the Kingdom’s ability to utilize its western coast to mitigate the fallout from escalating tensions in the Strait of Hormuz.

“Bloomberg” quoted sources stating that Saudi Arabia is considering securing approximately $8 billion in loans as war-related pressures on its public finances escalate.

The report noted that the Yemeni naval blockade in the Red Sea has stymied Saudi efforts to bypass the Strait of Hormuz by shipping crude from its western ports.

In a related context, “Reuters” reported that African buyers have begun sourcing alternative suppliers for diesel following a drop in shipments from Saudi Arabia and other nations. Reduced operational rates at key Saudi Aramco production facilities have further driven down Saudi diesel exports.

According to trade sources cited by Reuters, the Yemeni blockade and attacks on the Jizan refinery have contributed to the decline in Saudi diesel exports.

Data from energy intelligence firm Kpler showed that diesel shipments from the Jizan refinery fell to zero in August.

YPA