Two Chinese Supertankers Carrying Saudi Oil Exit Red Sea Amid Blockade

Two Chinese supertankers have successfully exited the Red Sea, carrying a total of 4 million barrels of Saudi Arabian oil. This movement occurred via the Bab el-Mandeb strait on Thursday, as reported by shipping data. Their departure comes amidst a blockade imposed by Yemen's Houthi militias, which has been targeting shipments of Saudi oil, while other vessels in the region have faced attacks.

The blockade by the Iran-aligned Houthis is exacerbating global energy supply disruptions. This situation is further complicated by ongoing hostilities between the United States and Iran, which have effectively shut down the key Strait of Hormuz, a vital passage for oil shipments.

The first of the two tankers, the Singaporean-flagged VLCC Xin Long Yang, had previously made a U-turn and paused in the middle of the Red Sea on Tuesday. However, it resumed its journey southward late on Wednesday. Following closely behind was the Chinese-flagged VLCC Cosnew Lake, which also exited the Red Sea later on Thursday, according to the shipping data.

The Xin Long Yang is en route to the port of Qinzhou in southern Guangxi province, while the Cosnew Lake is expected to discharge its cargo at the port of Huizhou in Guangdong province. Both vessels have indicated through their automatic identification system transmitters that they are manned by Chinese crews.

These tankers are chartered by Unipec, the trading arm of Sinopec, Asia's largest refiner. They loaded their crude at Saudi Arabia's port of Yanbu earlier in the week. Despite inquiries, Cosco Shipping, which manages both tankers, and Sinopec have not provided comments regarding the situation.

In the meantime, at least two other VLCCs chartered by Unipec, which were scheduled to enter the Red Sea to load Saudi crude at Yanbu later this month, have slowed their approach towards Bab el-Mandeb. These vessels have been reported to be making small circles in the Gulf of Aden, according to shipping data.

Earlier on Thursday, the Houthis announced a military operation targeting two Saudi oil tankers, claiming they had violated the blockade. Shipping data confirmed that these tankers were supplying crude to Saudi power plants and local refineries. The Saudi Arabian news agency reported that one of the vessels, the Encelia, was attacked in the Red Sea and caught fire, although the crew was reported safe.

The ongoing conflict in the Middle East has led to a decline in shipping traffic through the Bab el-Mandeb strait. Data from LSEG and analytics firm Kpler indicated that movement through the Strait of Hormuz remained subdued as well. On Wednesday, 27 vessels, including five oil tankers and a liquefied petroleum gas carrier, crossed the Bab el-Mandeb, a decrease from 38 the previous day.

Data from Vortexa showed that one VLCC exited Bab el-Mandeb with its transponder switched off on Wednesday. Additionally, two VLCCs emerged from the Strait of Hormuz on Thursday. The New Giant, carrying 2 million barrels of Iraqi crude, was headed for Rizhao in eastern China, while the Rotterdam Energy, loaded with 2 million barrels of Upper Zakum crude from the UAE, was reported off Fujairah.

As of July 20, there were 253 laden tankers in the Gulf, comprising 102 oil tankers, 64 liquefied natural gas carriers, and 66 liquefied petroleum gas carriers, according to LSEG data. The situation remains fluid as the geopolitical tensions continue to impact shipping routes and global oil supply.