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

• Three VLCCs loaded 6 million barrels total from Juaymah and Ras Tanura terminals after a three-week gap in loadings, with six more VLCCs potentially scheduled to load later in August
• Saudi exports remain constrained by Houthi blockades in the Red Sea, forcing diversions to Egypt's Sidi Kerir port, which is exporting only 670,000 barrels per day to Asia versus 4 million bpd previously from Yanbu
• The Sidi Kerir alternative route is proving unpopular with Asian customers, particularly Chinese buyers, due to longer voyage times and significantly higher freight costs

Summary: Saudi Arabia Resumes Oil Loadings from Strait of Hormuz

Key Developments:

Saudi Aramco resumed oil loading operations from inside the Strait of Hormuz last week after a weeks-long halt following attacks on its tanker fleet during U.S.-Iran tensions in July. Between August 12-16, three very large crude carriers (VLCCs) loaded 2 million barrels each from Juaymah and Ras Tanura terminals—ending a three-week gap in loadings from these ports.

Operational Details:

The state energy giant is offering spot cargoes of Arab Medium and Arab Heavy crude for ship-to-ship (STS) transfers off Fujairah, UAE. Six additional VLCCs are provisionally scheduled to load later in August. Saudi Aramco may deploy its own fleet, including vessels from Saudi operator Bahri, alongside Sinokor tankers for Hormuz transits. Seven Bahri VLCCs were floating off UAE and Oman, with two more heading to Fujairah.

Market Implications:

The resumption should help ease tight supply of heavy crude grades used for residue fuel and refining into gasoline and diesel. However, Saudi exports remain constrained due to Houthi blockades in the Red Sea, where Aramco previously exported 4 million barrels per day from Yanbu.

Alternative Route Challenges:

Saudi Arabia has offered crude loadings from Egypt's Sidi Kerir Mediterranean port as an alternative, with approximately 670,000 barrels per day scheduled for August versus zero in prior months. However, analysts note Asian customers, particularly Chinese refiners, are resisting due to extended voyage times and elevated freight costs, suggesting this alternative route is proving unviable.