Aramco to boost Gulf exports to 60m barrels

Saudi Arabia is set to increase its crude exports from the Gulf port of Ras Tanura by 60 million barrels, according to trade sources. The shipments will be loaded onto ships via ship-to-ship transfer at the Omani port of Sohar for the next two months. Export levels from the Gulf region have risen to an average of 1 to 1.5 million barrels per day, which has contributed to a decrease in global oil prices.

The higher exports are intended to compensate for some of the volume lost at the Red Sea port of Yanbu, where exports slowed following an attack on the East-West pipeline. Major buyers for the spot supplies include Chinese and South Korean refiners, as well as India and Japan. Saudi Aramco did not comment on the matter. The rise in Gulf exports benefits Asian buyers, who are the primary market for Saudi Arabian crude.

However, supertanker freight rates have reached a record high this week. The Petroleum Association of Japan reported that Japanese oil refiners have secured adequate crude supplies through November, thanks to the ship-to-ship transfers occurring outside of the Strait of Hormuz.