Saudi Aramco Resumes Oil Loadings Inside the Strait of Hormuz

Saudi Aramco began loading crude from inside the Strait of Hormuz again last week, ending a three-week pause that followed attacks on its tanker fleet amid heightened U.S.–Iran tensions. The move restores a key export route for the state-owned energy giant and adds spot heavy-crude cargoes for Asian refiners.

Reuters

Between August 12 and later in the month, three very large crude carriers—Malaysia Prosperity, Algeria Prosperity, and Singapore Prosperity—each took on roughly 2 million barrels of crude from the Juaymah and Ras Tanura terminals, according to ship-tracker data from Vortexa and Kpler. Shipping data from LSEG later showed seven VLCCs owned by Saudi-based operator Bahri floating off the UAE and Oman, with two more heading to Fujairah. Provisional Kpler data indicate that six additional VLCCs could load Saudi oil from the strait later in the month.

Reuters

Despite the restart, Saudi exports remain constrained. A blockade by Yemeni Houthi forces in the Red Sea has forced Aramco to divert shipments to the Yanbu port and to offer limited cargoes from Egypt’s Mediterranean port of Sidi Kerir. Kpler data project that about 670,000 barrels per day of Middle Eastern crude will be loaded at Sidi Kerir for Asian buyers this month, up from zero in the preceding three months, but the volume is still far below the pre-blockade level of roughly 4 million barrels per day exported from Yanbu.

Reuters

The renewed Hormuz loadings could ease the tight global supply of heavier crude grades, which are used to produce residue fuel for ships or refined into higher-quality gasoline and diesel. Traders note that Aramco may also employ Saudi-owned tankers for Hormuz transits, supplementing vessels owned by Sinokor, although higher shipping costs and longer routes continue to deter some purchasers.

Reuters

Saudi Aramco has declined to comment on the recent loadings. Sinokor, the owner of the three VLCCs, did not respond to a request for comment. Bahri’s fleet movements were reported through LSEG shipping data.

Reuters