Saudi export rerouting amid Gulf of Oman STS bottlenecks amplify VLCC intensity of MEG flows

AI Summary

Saudi Arabia is rerouting its exports due to Gulf of Oman ship-to-ship transfer bottlenecks, pushing operations to longer-distance hubs like West Coast India and Malaysia. This longer routing increases VLCC demand and decreases vessel productivity, straining fleet capacity in the Middle East Gulf flows.

Saudi Arabia’s export rerouting is pushing Gulf of Oman (GoO) ship-to-ship (STS) transfers toward capacity limits. To maintain flows, operations must pivot to longer-distance hubs like West Coast India or Malaysia. These extended round trips severely degrade vessel productivity, requiring 36-40 VLCCs under our base case and driving total fleet demand up disproportionately relative to ...