Aramco Diversifies Crude Oil Distribution to Bypass Strait of Hormuz Disruptions

Saudi Aramco is expanding its crude oil distribution network to bypass the Strait of Hormuz, a key waterway in the Middle East that has been affected by shipping disruptions. The company is offering Arab Medium and Arab Heavy crude to some Asian refiners through private negotiations.

This move is similar to one adopted by Abu Dhabi National Oil Co (ADNOC), which also supplies oil via ship-to-ship transfers off Fujairah in the UAE. It's a rare step for Aramco, as it typically relies on traditional shipping routes.

The company is reportedly diverting its Arab Light crude to the Red Sea port of Yanbu for export and has also offered this grade from Egypt's Mediterranean port of Sidi Kerir following attacks in the Red Sea by the Iran-aligned Houthis. It's unclear how Aramco moved its cargoes out to Fujairah.