Saudi Arabia resorts to desperate 'Hormuz shuttle' measure to ease oil supply crunch

[Anchor]

Saudi Arabia, facing the blockage of major crude export routes, has resorted to a desperate measure known as the "Hormuz shuttle." Similar to the tactics Iran uses to covertly operate oil tankers and evade U.S. sanctions, this method is analyzed to be providing a slight breather for crude oil supplies.

Beijing correspondent Han Sang-woo reports.

[Reporter]

Following armed clashes with Yemen's Houthi movement, drone attacks heavily damaged two pump stations along Saudi Arabia's East-West pipeline.

While projections indicate that full restoration will take more than a month, emergency measures are also being implemented to secure alternative pipeline routes.

[Stuart Livingstone-Wallace / Bloomberg Middle East Bureau Chief: Saudi Arabia appears to be trying to bypass the damaged sections of the pump stations. Although the pressure is expected to be lower, they are hoping to restore some transport capacity by doing so.]

At the same time, the country is also utilizing a crude transport method dubbed the "Hormuz shuttle."

This method involves turning off vessel identification systems at night, exiting the Strait of Hormuz through Omani waters, and transshipping the oil onto other vessels bound for importing countries.

It is a tactic previously used by Iran to bypass U.S. maritime blockades, and the United Arab Emirates has also been employing it since April.

International crude market experts estimate that Middle Eastern crude moving through these methods reaches up to 9 million barrels per day.

International oil prices edged down slightly for two consecutive days recently, which analysts attribute to a partial easing of concerns over Saudi crude supply disruptions.

Another factor is the influence of China, which is reportedly holding 1.4 billion barrels in strategic reserves, accounting for one-third of global stockpiles.

With its demand for crude dropping due to the expansion of electric vehicles, China's reduction in import volumes is having a positive stabilizing effect on international oil prices.

[Samantha Gross / Fellow, Brookings Institution: As fossil fuels become more expensive and less secure following the war with Iran, there is another important reason to move away from fossil fuels.]

As the prolonged war involving Iran continues, new variables are emerging in the crude oil market.

(Video Editing: Lee Seung-yeol, Design: Kim Han-gil)
※ Please note: This article was translated by AI and may contain errors.