Saudi Aramco Sells Oil from Oman Coast to Chinese Refiners

Saudi Arabia's state oil company, Saudi Aramco, is offering to sell oil from off the coast of Oman to Chinese refiners. This move could increase traffic through the Strait of Hormuz, a strategic waterway in the Middle East.

The grades being marketed are Arab Medium and Arab Heavy, which suggests that the barrels came from inside the Persian Gulf. Saudi Aramco's trading arm shuttled some supplies through Hormuz in May, but the kingdom has also been diverting exports to its Red Sea port of Yanbu, making it less reliant on the waterway.

The recent move is seen as a sign that Saudi Arabia may be following the United Arab Emirates in increasing oil shipments through the Strait. This could help keep a lid on oil prices and assuage fears of an energy-driven inflation spike.