KSA resumes oil loadings, sales from inside of Hormuz

SINGAPORE: 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 attacks 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 can be processed further at refineries to yield higher-quality fuels such as gasoline and diesel.

Three very large crude carriers (VLCCs) — Malaysia Prosperity, Algeria Prosperity and Singapore Prosperity — loaded 2 million barrels of crude each from the Juaymah and Ras Tanura terminals from August 12 to 16. Data from shiptrackers Vortexa and Kpler showed a gap of three weeks since the last loading at the ports. It was not immediately clear which grades the tankers were carrying.

Saudi Aramco has declined to comment. Sinokor, which owns the tankers, did not respond to a request for comment.

Six more VLCCs could load Saudi oil from inside the strait later this month, provisional data from Kpler showed.

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.