Saudi Aramco has increased oil offerings for September loading outside the Strait of Hormuz, according to a Reuters report early Wednesday citing people familiar with the matter. The move follows the sale of at least 4 million barrels to China this month.
The state oil producer has reportedly initiated a sales process for Arab Medium and Arab Heavy crude with Asian buyers for the second week in a row. The cargoes are being offered through ship-to-ship transfers off Fujairah in the United Arab Emirates or Sohar in Oman, both located outside the strait. Bids were due on Wednesday.
Shipping data shows Aramco has been transporting cargoes using tankers with their tracking systems turned off to avoid attacks while passing through the strait. The waterway handled one-fifth of global oil and gas flows before the U.S.-Iran conflict began on February 28.
Two supertankers carrying 4 million barrels of Saudi crude are heading to China after loading through ship-to-ship transfers off Sohar, according to shipping data from Vortexa and Kpler.
The very large crude carrier Singapore Prosperity transferred its Saudi crude cargo around August 22 to the VLCC Xin Hui Yang, which is scheduled to reach Ningbo port in eastern China on September 15. On Tuesday, VLCC Algeria Prosperity transferred its cargo to the VLCC Xin Han Yang, expected to arrive at Zhanjiang port in southern China on September 12. Both shipments are destined for Sinopec, the world’s largest refiner, according to Vortexa.
Aramco sold at least 4 million barrels of heavier grades to PetroChina and Sinochem last week after restarting oil loading at the Ras Tanura port earlier in August.
Source: Investing.com
