Aramco Routes More Crude Through Strait of Hormuz Amid Red Sea Concerns

Aramco is expanding its logistics network by offering crude cargoes for sale off Oman's coast, according to Bloomberg. The move signals a possible shift towards routing more crude through the Strait of Hormuz, which may help avoid the Red Sea due to security concerns.

The grades being offered are Arab Medium and Arab Heavy, typically produced from fields inside the Arabian Gulf. These cargoes are currently being sold to selected Chinese refiners who favor heavier, higher-sulfur crude for their complex processing facilities.

Aramco is also increasing loading activity at its Saudi Arabian Gulf facilities, with satellite imagery showing vessels with at least 9 million barrels of capacity loading at or near the Ras Tanura export complex over the past week. A large cluster of oil supertankers has gathered just outside the Gulf.