Aramco Offers Some Asian Buyers Crude Outside Strait of Hormuz
Saudi Aramco is negotiating with some Asian refiners to supply Arab Medium and Arab Heavy crude through ship-to-ship transfers off Fujairah in the United Arab Emirates, according to two sources familiar with the matter.
What Readers Should Know
- Aramco is in private talks with some Asian refiners to supply crude outside the Strait of Hormuz.
- The proposed cargoes include Arab Medium and Arab Heavy crude.
- The crude would be transferred ship-to-ship off Fujairah in the UAE.
- One source said the cargoes were for September loading.
- Aramco has also diverted Arab Light crude to Yanbu and offered the grade from Egypt’s Sidi Kerir port.
- Disruptions around the Strait of Hormuz and the Red Sea have affected Aramco’s market share in markets including India.
Montreal (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.
How Aramco Is Offering Crude Outside Hormuz
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.
How Regional Disruptions Are Affecting Aramco’s Market Share
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.
How ADNOC Has Increased Crude Sales
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.
Why Ship-to-Ship Transfers Matter to Asian Refiners
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.
Frequently Asked Questions
What is Aramco offering Asian refiners?
Aramco is offering Arab Medium and Arab Heavy crude through private negotiations with some Asian refiners.
Where would the crude transfers take place?
The proposed ship-to-ship transfers would take place off Fujairah in the United Arab Emirates.
When were the cargoes expected to load?
One of the sources said the cargoes were for September loading.
What other route has Aramco used for Arab Light crude?
Aramco has diverted Arab Light crude to Yanbu and offered the grade from Egypt’s Sidi Kerir port.
Why are refiners considering these arrangements?
The arrangements allow Asian refiners to receive crude without sending their own tankers through the Strait of Hormuz.
Courtesy: www.reuters.com
