Saudi Arabia Rebound: Ship-to-Ship Transfers Offset Pipeline Disruptions
Saudi Arabia's oil exports from its Persian Gulf port of Ras Tanura have rebounded significantly after disruptions caused by an attack on the East-West pipeline, according to multiple trade sources.
The state-owned Saudi Aramco has been able to sell around 60 million barrels of crude through ship-to-ship transfers at the Omani port of Sohar this month and next, with Chinese and South Korean refiners among the top buyers. This move could help make up for some of the volume lost at its Red Sea port of Yanbu.
The increased exports have cooled global oil prices, which fell more than $1 a barrel on Friday due to reports that Saudi Arabia was seeking to return about half the capacity of the East-West pipeline within days. The nation is also offering more crude cargoes to Asian refiners through ship-to-ship transfers.
The Petroleum Association of Japan reported that the country's oil refiners have secured sufficient crude supplies through November, thanks to these ship-to-ship transfers. PAJ President Shunichi Kito said that in some cases, oil passes through the Strait of Hormuz at Saudi Arabia's risk before being transferred outside the gulf.