Aramco Bolsters Oil Sales Outside Strait of Hormuz Amid Regional Tensions

Saudi Aramco has increased oil sales outside the Strait of Hormuz in September, offering additional cargoes for loading in Asian markets. According to sources, at least 4 million barrels of crude have been sold to China via ship-to-ship transfers off Fujairah and Sohar this month. The Saudi state-owned oil company has started a sales process for Arab Medium and Arab Heavy crude with Asian buyers, offering cargoes via STS transfers off Fujairah in the UAE or Sohar in Oman.

Shipping data indicates that Aramco is moving cargoes aboard tankers with their trackers switched off to evade attacks during transit through the strait. This follows the sale of 4 million barrels of Saudi crude to China, which departed for the country after loading via STS transfers off Sohar. The very large crude carrier Singapore Prosperity transferred its Saudi cargo to the VLCC Xin Hui Yang on August 22, expected to arrive at China's eastern Ningbo port on September 15.

Aramco also sold at least 4 million barrels of heavier crude grades to PetroChina and Sinochem last week after resuming oil loadings at the Ras Tanura port earlier in August. The Saudi company declined to comment on these developments.