KSA resumes oil loadings, sales from inside of Hormuz

Saudi Aramco has restarted oil loading operations from within the Strait of Hormuz, according to shipping data and trade sources. The state energy giant has several tankers on standby to load heavy crude, offering spot cargoes to Asian refiners. The resumption comes after a pause in sales following attacks on Aramco's tanker fleet in the strait during heightened tensions between the US and Iran.

The return of Saudi oil exports may help alleviate the shortage of heavier grades of crude, which are used to produce residual fuel for ships and can be further refined into high-quality fuels. Three VLCCs - the Malaysia Prosperity, Algeria Prosperity, and Singapore Prosperity - loaded a total of 2 million barrels of crude from August 12 to 16 at the Juaymah and Ras Tanura terminals.

Data from Vortexa and Kpler indicate a three-week gap since the last loading at the ports. It remains unclear which specific grades the tankers were carrying. Saudi Aramco has not commented on the matter, while Sinokor, the tanker owners, have also not responded to requests for information. Six more VLCCs are expected to load Saudi oil from inside the strait later this month, according to provisional data from Kpler.

Traders suggest that Saudi Aramco could use Saudi tankers for the Hormuz transit, in addition to Sinokor vessels. Currently, Saudi oil exports remain limited due to a blockade by Yemeni Houthi rebels in the Red Sea, where Aramco has redirected its exports to the port of Yanbu during the ongoing conflict with Iran.