Saudi Aramco Diversifies Oil Exports Amid Strait of Hormuz Concerns

Saudi Aramco is exploring alternative routes for its oil exports to Asian clients, citing ongoing security and shipping concerns in the Strait of Hormuz. The company has begun negotiating deliveries of Arab Medium and Arab Heavy crude through ship-to-ship transfers off Fujairah and Sohar.

The scheme involves transferring cargo between two tankers at sea, reducing the direct exposure of shipowners and buyers to risks in the strait. However, this process requires additional vessels, coordination, insurance coverage, and time, increasing logistics costs.

According to trade sources, some Asian refineries have been offered crude oil deliveries outside the Strait of Hormuz via ship-to-ship transfers for September loading. The measure aims to limit risk for Saudi Arabia's exports amid ongoing security and shipping concerns in the region.