Aramco Resumes Oil Loadings from Strait of Hormuz Amid Global Supply Tensions
Saudi Arabia's state energy giant Aramco has resumed oil loadings from inside the Strait of Hormuz, after halting sales for weeks due to attacks on its tanker fleet. The resumption comes as the company offers spot heavy crude cargoes via ship-to-ship transfers off Fujairah in the United Arab Emirates. This move is expected to ease the tight supply of heavier grades that produce more residue fuel.
According to shipping data and trade sources, three very large crude carriers (VLCCs) loaded 2 million barrels each from the Juaymah and Ras Tanura terminals between August 12-16. It's unclear which grades the tankers were carrying. Saudi Aramco has declined to comment.
Provisional data shows six more VLCCs could load Saudi oil from inside the strait later this month. Traders say Aramco may deploy Saudi tankers for the Hormuz transit, in addition to Sinokor vessels. However, Saudi oil exports remain curtailed due to a blockade by the Yemeni Houthis in the Red Sea.
As an alternative, Saudi has offered additional crude cargoes for loading from Egypt's Mediterranean port of Sidi Kerir. But the volume is a fraction of the pre-blockade level of 4 million barrels per day exported from Yanbu. About 670,000 barrels per day of Middle Eastern crude are expected to be loaded at Sidi Kerir for Asia this month.