Saudi Arabia Unloads 100M Barrels Amid Asian Oil Crunch
Saudi Arabia's oil exports have surged in recent days, helping to alleviate a looming supply crunch in Asia. The kingdom has sold nearly 100 million barrels of oil to Asian buyers since mid-last week, more than doubling recent sales through the Strait of Hormuz.
The sudden increase is equivalent to approximately one day's worth of total global oil demand. This comes as Saudi Aramco's East-West pipeline remains partially operational following an attack on September 10. The pipeline was damaged, forcing Saudi Arabia to rely more heavily on exports through the Strait of Hormuz.
Gulf producers are now taking on greater shipping risks by offering to manage logistics and transport crude all the way to Asian customers. This is a significant shift from their previous practice of selling oil on a 'free-on-board basis,' where buyers were responsible for transporting their own vessels to collect the crude.