Saudi Arabia resumes oil loadings, sales from inside Strait of Hormuz

Saudi Aramco resumed oil loading from inside the Strait of Hormuz last week, with numerous tankers awaiting to offload. The state energy giant is offering spot heavy crude cargoes, including Arab Medium and Arab Heavy grades, to Asian refiners through ship-to-ship transfers off Fujairah in the UAE. This move comes after Saudi Arabia halted sales for weeks following attacks on its tanker fleet during the U.S.-Iran conflict escalation.

Three very large crude carriers (VLCCs) - Malaysia Prosperity, Algeria Prosperity, and Singapore Prosperity - loaded 2 million barrels each from the Juaymah and Ras Tanura terminals between August 12 and 16. Vortexa and Kpler data revealed a three-week gap since the last loading at the ports. However, it remains unclear which grades the tankers are carrying.

Saudi Aramco has not commented on the matter, while Sinokor, the tanker's owner, did not respond to a request for information. Six more VLCCs are expected to load Saudi oil from inside the strait later in the month, according to provisional data from Kpler. Traders suggest that Saudi Aramco could use Saudi tankers for the Hormuz transit, apart from Sinokor vessels.

However, Saudi oil exports remain limited due to a blockade by Yemeni Houthis in the Red Sea. Aramco has diverted its exports to the port of Yanbu, while facing additional shipping costs and longer voyages. Saudi oil exports to Asia are expected to be around 670,000 barrels per day this month, down from zero in the previous three months.