Aramco Diversifies Crude Supply Amid Ongoing Strait Disruption

Saudi Aramco is offering crude oil outside the Strait of Hormuz to some Asian refiners through private negotiations, according to two sources familiar with the matter. This strategy mirrors that adopted by Abu Dhabi National Oil Co (ADNOC), which has also been supplying crude via ship-to-ship transfers.

Aramco is in talks with buyers to supply Arab Medium and Arab Heavy crude via STS transfers off Fujairah in the UAE, one of the sources said. The cargoes are reportedly for September loading, although it's unclear how Aramco moved its cargoes out to Fujairah.

This move indicates that crude supplies are finding alternative routes around the prolonged disruption to the Strait of Hormuz. Aramco has previously diverted Arab Light crude to the Red Sea port of Yanbu and offered the grade from Egypt's Mediterranean port of Sidi Kerir following attacks in the Red Sea by Iran-aligned Houthis.