If President Donald Trump decides to block imports of crude from Saudi Arabia, the kingdom is exploring re-routing millions of barrels of oil onboard tankers sailing to the US. Due to arrive in the coming weeks, Saudi oil is on its way to the US. Markets which already struggling to absorb an oversupply of stocks received more pressure from around 40 million barrels of oil from Saudi.
The US officials have said in recent days that the country is considering putting tariffs on Saudi shipments or blocking the shipments of crude oil.
When the ships were chartered in March, Saudi tried to seek storage options from tanker owners, shipping sources said. If the US halted imports, two sources said the kingdom was looking into whether it could re-route the cargoes elsewhere.
With deliveries of crude shipments for April, May and June, Saudi Aramco said it is committed to its long-term contracts with customers. If a ban imposed by the US, there was an expectation that the Saudis would look to divert the cargoes to other markets, oil traders active in Asian and European markets said. Saudis cargoes would then put huge pressure on storage tanks in Asia and Europe regions.
