Saudi Aramco boosts Ras Tanura exports, shifts to spot sales, sources say

• Five VLCCs exited the Strait of Hormuz heading to China and Japan, with another four vessels near Ras Tanura waiting to load or already laden
• Aramco offered 6 million barrels of July-loading crude to Asian customers at 'very attractive' spot prices, competing against other Middle Eastern suppliers now selling at discounts
• Ras Tanura previously exported over 5 million bpd before conflict began, and Aramco had shut its 550,000 bpd refinery there as a precautionary measure during the war

Summary: Saudi Aramco Boosts Ras Tanura Exports, Shifts to Spot Sales

Key Developments:

Saudi Aramco resumed operations at Ras Tanura, the world's largest oil port, after a nearly four-month halt. At least five Very Large Crude Carriers (VLCCs) carrying 10 million barrels of Saudi oil have exited the Strait of Hormuz, heading primarily to Asian markets.

Strategic Shift:

In a significant departure from standard practice, Aramco is offering crude to Asian customers on a spot pricing basis rather than through traditional long-term contracts at official selling prices (OSPs). This tactical move aims to attract demand amid intensifying competition following an interim peace deal. Trade sources described the pricing as "very attractive" for Chinese buyers, particularly as Aramco's July OSPs were set at premiums of $6-$10 per barrel in early June—now uncompetitive compared to discounted Middle Eastern crude.

Shipment Details:

• 6 million barrels of July-loading crude offered to Asian customers
• Two VLCCs heading to Japan, two to China
• Chinese destinations include Sinochem's Quanzhou refinery (2 million barrels) and Shenghong Petrochemical at Lianyungang (2 million barrels)
• Four additional VLCCs stationed near Ras Tanura

Market Context:

Brent crude has fallen to approximately $70 per barrel from nearly $120 in March, creating a prompt supply glut in Asia. Progress on U.S.-Iran peace talks has increased market competition. Before the conflict, Ras Tanura exported over 5 million barrels per day. Aramco had shut its 550,000 bpd refinery at the facility as a precautionary measure during the war.

Implications:

The shift to spot pricing signals Saudi Arabia's urgency to move inventory in an oversupplied Asian market where most refiners have secured supplies through August.