Saudi Arabia Reverts to Strait of Hormuz for Crude Oil Exports
Saudi Arabia has shifted its crude oil exports back to the Strait of Hormuz, offloading nearly 100 million barrels of crude to Asian buyers. This move comes after the kingdom's East-West pipeline was halted due to technical issues.
The sales are expected to maintain some supply to Asia as Red Sea exports recover, and could calm worries about plunging supply and restrain oil price spikes. Chinese refiners, including state-owned companies and small-scale refineries known as 'teapots', along with refineries in India, South Korea, and Japan, have been buying the Saudi crude.
Saudi Arabia's Aramco is managing the logistics of transporting the cargoes to Asia through ship-to-ship transfers at Oman's port of Sohar. The increased shipments via Hormuz could limit the upside in oil prices despite the East-West pipeline being out of action.