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Aramco Offers More Oil Outside Hormuz, Some to China

  • Crude offered via ship-to-ship transfers at far side of strait
  • Shipping data indicates Aramco moving cargoes through strait with trackers switched off
  • Aramco has sold at least 4 million barrels ​to China this month

SINGAPORE, Aug 26 (Reuters) - Saudi Aramco has offered more oil for loading outside the Strait of Hormuz in September, four sources with knowledge of the matter said on Wednesday, after the producer sold at least ​4 million barrels to China this month.

Shipping data indicates that Aramco has resorted ​to shuttling cargoes aboard tankers with their trackers switched off to ⁠evade attacks during transit through the strait, which was used by a fifth of ​the world's oil and gas before the U.S.-Iran war broke out on February 28.

Saudi Aramco ​did not immediately respond to a request for comment.

Aramco has started a sales process for Arab Medium and Arab Heavy crude with Asian buyers for a second consecutive week, with cargoes offered via ship-to-ship (STS) ​transfers off Fujairah in the United Arab Emirates or Sohar in Oman, both outside ​the strait, the sources said. Bids are due by Wednesday, one of the sources said.

The offers come ‌after ⁠two supertankers carrying 4 million barrels of Saudi crude were bound for China after loading the cargoes via STS transfers off Sohar, shipping data from Vortexa and Kpler showed.

Very large crude carrier Singapore Prosperity transferred its Saudi crude cargo around August 22 to the ​VLCC Xin Hui Yang, ​which is expected ⁠to arrive at eastern Chinese Ningbo port on September 15, the data showed.

On Tuesday, VLCC Algeria Prosperity transferred its cargo to the ​VLCC Xin Han Yang, which is expected to arrive at ​the Zhanjiang ⁠port in southern China on September 12. Both cargoes are to be delivered to the world's largest refiner Sinopec, according to Vortexa. Sinopec did not immediately respond to requests for comment.

Aramco ⁠also ​sold at least 4 million barrels of the heavier ​grades to PetroChina and Sinochem last week after resuming oil loading at the Ras Tanura port earlier in August.

Reporting ​by Chen Aizhu, Siyi Liu and Florence Tan; Editing by Kate Mayberry and Conor Humphries

Source: Reuters


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