Saudi Arabia's $5 Oil Detour Is Expensive—and Worth It

Source Summary

Saudi Arabia is routing crude oil westward across the country to Yanbu, then north through the Red Sea to Egypt, across the SUMED pipeline to the Mediterranean, and around the Cape of Good Hope to Asian customers. This detour adds approximately $5 per barrel in extra freight, fuel, insurance, and pipeline charges, despite sending oil thousands of kilometers in the opposite direction from its destination.