A crucial dynamic oil traders are watching is whether Saudi Arabia can maintain high export volumes through the Strait of Hormuz while simultaneously resuming shipping from Yanbu, said Hamad Hussain, a senior economist at Capital Economics.
If elevated Gulf shipments hold steady as Yanbu operations recover, overall Saudi oil exports could surpass pre-attack levels, which would, in turn, help reverse recent crude-price increases, he said.
“However, exporting from Yanbu is more challenging than it was earlier in the conflict given the threat posed to energy infrastructure by the Houthis,” Hussain said.
