Saudi Aramco offers crude outside Hormuz to some Asian refiners, sources say

SEATTLE (Oil Monster):  Saudi Aramco is offering crude oil outside the ​Strait of Hormuz to some Asian refiners through private negotiations, ‌two sources with knowledge of the matter said on Monday, in a strategy similar to that adopted by United Arab Emirates' Abu Dhabi National Oil Co (ADNOC).

In a rare ​move, Aramco is in talks with buyers to supply Arab ​Medium and Arab Heavy crude via ship-to-ship (STS) transfers off Fujairah ⁠in the UAE, the sources said. One of them said the ​cargoes were for September loading.

It was not immediately clear how Aramco ​moved its cargoes out to Fujairah. The offers are the latest sign of crude supplies finding their way around the prolonged disruption to the Strait of Hormuz.

Aramco declined ​to comment.

Aramco has also diverted its Arab Light crude to the ​Red Sea port of Yanbu for export since the Iran war began, and also offered ‌the ⁠grade from Egypt’s Mediterranean port of Sidi Kerir following attacks in the Red Sea by the Iran-aligned Houthis.

Disruption in supplies from the Strait of Hormuz and Red Sea, due to the U.S.-Israeli war on ​Iran and attacks ​on vessels by ⁠Yemen's Houthis, has curtailed Aramco's market share in key consuming markets such as India.

In contrast, sustained shipment of ​crude from inside the Gulf to waters outside ​the Strait ⁠have helped boost UAE's oil sales with ADNOC selling more than 100 million barrels through tenders.

The arrangements allow Asian refiners to receive crude without sending ⁠their own ​tankers through the strait, where security concerns ​have deterred many shipowners from entering.

Courtesy: www.reuters.com