Saudi Aramco Shifts Crude Supply Routes Amid Red Sea Tensions
Saudi Aramco has expanded its crude supply routes to bypass the Strait of Hormuz after recent tensions in the Red Sea region. The state-owned energy giant sold at least 4 million barrels to Chinese buyers earlier this month and is now marketing Arab Medium and Arab Heavy crude among Asian refiners via ship-to-ship transfers at Fujairah in the UAE or Sohar in Oman.
The company has been moving shipments on tankers with transponders switched off to reduce the risk of attacks during transit. Two supertankers loaded with 4 million barrels of Saudi crude are en route to China, having been filled via ship-to-ship transfers near Sohar. The VLCC Singapore Prosperity handed off its Saudi cargo around August 22 to the VLCC Xin Hui Yang, which is due at Ningbo port on China's eastern coast on September 15.
Aramco had previously sold at least 4 million barrels of heavier crude varieties to PetroChina and Sinochem after resuming loading operations at Ras Tanura port in early August. The company's move comes amid ongoing hostilities between the US and Iran, which have raised concerns about oil shipments through the Strait of Hormuz.