Saudi Aramco is negotiating to supply crude oil to select Asian refiners outside the Strait of Hormuz, mirroring a strategy used by the UAE’s Abu Dhabi National Oil Co (ADNOC). Sources indicate that Aramco is discussing shipments of Arab Medium and Arab Heavy crude through ship-to-ship transfers off Fujairah, with cargoes intended for September loading.
The method by which Aramco transports its crude to Fujairah remains unclear, but these offers demonstrate efforts to navigate the ongoing disruptions affecting the Strait of Hormuz. The company has refrained from commenting on the situation.
Since the onset of the Iran conflict, Aramco has redirected its Arab Light crude to the Red Sea port of Yanbu and has also offered it from Egypt’s Sidi Kerir port due to attacks by Iran-aligned Houthis in the Red Sea. These disruptions have impacted Aramco’s market share in key regions like India.
Conversely, the UAE has benefited from increased oil sales, with ADNOC successfully selling over 100 million barrels through tenders. This strategy allows Asian refiners to receive crude without risking their tankers in the security-challenged waters of the Strait.
