Saudi Aramco has expanded its September-loading crude oil offerings to Asian refiners, marking the second consecutive week of increased sales outside the Strait of Hormuz. The state-owned producer is offering Arab Medium and Arab Heavy crude grades, with bids due on Wednesday.
The shipments are being facilitated through ship-to-ship transfers conducted off Fujairah in the United Arab Emirates or Sohar in Oman, both locations outside the contested waterway. To mitigate security risks during transit, Aramco is transporting cargoes using tankers with transponders disabled while passing through the strait.
The Strait of Hormuz previously handled approximately one-fifth of global oil and gas flows before heightened U.S.-Iran tensions escalated in late February. The shift in shipping routes follows Aramco’s resumption of oil loading at the Ras Tanura port earlier in August, which had been paused due to regional instability.
Shipping data from Vortexa and Kpler indicates that two supertankers carrying a combined 4 million barrels of Saudi crude have already been dispatched to China. The very large crude carrier (VLCC) Singapore Prosperity transferred its cargo around August 22 to the VLCC Xin Hui Yang, which is scheduled to arrive at Ningbo port in eastern China on September 15. Similarly, the VLCC Algeria Prosperity transferred its cargo to the VLCC Xin Han Yang, expected to dock at Zhanjiang port in southern China on September 12.
Both shipments are destined for Sinopec, the world’s largest refiner. The previous week, Aramco sold at least 4 million barrels of heavier crude grades to PetroChina and Sinochem, following the restart of Ras Tanura operations.
