Aramco offers more oil outside Hormuz with some cargoes heading to China

SINGAPORE: 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.

Aramco has declined to 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.

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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.