Saudi Aramco resumed oil loading from inside the Strait of Hormuz last week and has more tankers waiting to load as the state energy giant offers spot heavy crude cargoes, according to shipping data and trade sources.
On Monday, the world's top oil exporter offered some Asian refiners Arab Medium and Arab Heavy crude cargoes for loading via ship-to-ship transfers off Fujairah in the United Arab Emirates this month. It had halted sales for weeks following att@cks on its tanker fleet in the Strait of Hormuz during an escalation of the US-Iran conflict last month.
The resumption of Saudi exports could help ease the tight supply of heavier grades that produce more residue fuel, which can be used to refuel ships or processed further at refineries to yield higher-quality fuels such as gasoline and diesel.
Three very large crude carriers, Malaysia Prosperity, Algeria Prosperity, and Singapore Prosperity, each loaded 2 million barrels of crude from the Juaymah and Ras Tanura terminals between August 12 and August 16.
Provisional data from Kpler showed six more VLCCs could load Saudi oil from inside the strait later this month. Traders said Saudi Aramco could deploy Saudi tankers for the Hormuz transit, in addition to Sinokor vessels. Seven VLCCs owned by Saudi-based operator Bahri were floating off the UAE and Oman, while two more were heading to Fujairah, shipping data on LSEG showed on Tuesday.
However, Saudi oil exports remain curtailed as the producer faces a blockade by the Yemeni Houthis in the Red Sea, where Aramco diverted its exports to the port of Yanbu earlier during the Iran war. The producer has offered additional crude cargoes for loading from Egypt's Mediterranean port of Sidi Kerir as an alternative, though the volume remains a fraction of the pre-blockade level of 4 million barrels per day previously exported from Yanbu, with additional shipping costs and longer voyages deterring purchases.
