Egypt’s Petroleum Minister Karim Badawi swiftly announced that the country is ready to facilitate Saudi crude transport from Yanbu to the Mediterranean via the Sumed pipeline — a 2.5 million barrel-per-day conduit running from Ain Sokhna on the Gulf of Suez to Sidi Kerir on the Mediterranean coast. The pipeline is jointly owned by Egypt (50%), Saudi Aramco (15%), Kuwait (15%), UAE’s Mubadala (15%), and QatarEnergy (5%).
Energy economists caution, however, that Sumed is a complementary link, not a substitute for Hormuz. The pipeline’s use still depends on oil reaching the Red Sea first, and its capacity falls far short of the volumes that normally pass through the Strait.
Brent crude surged to $73 per barrel on Friday — its highest level since July — before rocketing a further 8–10% to approximately $80 per barrel in over-the-counter trading on Sunday. Meanwhile, OPEC+ announced a modest production increase of 206,000 barrels per day for April, a move analysts say will do little to calm the markets. ‘Prices will respond to developments in the Gulf and the status of shipping flows, not to a relatively small increase in output,’ said Jorge Leon, a former OPEC official now serving as head of geopolitical analysis at Rystad Energy.
Source: dailynewsegypt.com | Reuters via thisdaylive.com