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Saudi Red Sea oil route premiums triple as war risk rises
Reuters reports quoted war-risk insurance premiums for Saudi-linked tankers calling at Yanbu have risen to about 3% of vessel value, up from under 1% in early July.
Saudi Arabia is facing higher shipping costs as it reroutes tankers away from the Strait of Hormuz amid Red Sea security risks, according to OilPrice citing Reuters.
OilPrice says quoted war-risk insurance premiums for Saudi-linked tankers calling at the Red Sea port of Yanbu have risen to around 3% of a vessel’s value, compared with less than 1% in early July.
The outlet also notes that the premium burden can vary by port, with quoted premiums at Saudi ports farther south, including Jizan, cited as potentially higher.