Aramco to boost exports from Strait of Hormuz to 60 million bbl in September and October, traders say

• Chinese and South Korean refiners are the primary buyers, with additional volumes going to India and Japan
• Global oil futures fell more than $1 per barrel on news that Saudi Arabia could restore about half the East-West pipeline capacity within days
• The increased exports from the Strait of Hormuz offset disruptions at Yanbu port caused by the Yemeni Houthi attack on the East-West pipeline

Summary: Saudi Aramco Boosts Crude Exports via Strait of Hormuz

Key Development:

Saudi Arabia has sold approximately 60 million barrels of crude oil from its Ras Tanura port in the Strait of Hormuz for September and October loading, utilizing ship-to-ship transfers at Oman's Sohar port.

Background:

This export surge follows a Yemeni Houthi attack on Saudi Arabia's East-West pipeline, which disrupted operations at the Red Sea port of Yanbu. The increased Gulf exports are compensating for volumes lost at Yanbu.

Market Impact:

• Global oil futures fell more than $1 per barrel on Friday following the announcement
• The rebound in Saudi exports from the Persian Gulf has cooled global oil prices
• Saudi Arabia is working to restore approximately half of the East-West pipeline capacity within days

Buyers:

Primary purchasers of the spot crude supplies include:

• Chinese refiners (top buyers)
• South Korean refiners (top buyers)
• Indian refiners
• Japanese refiners

Strategic Significance:

The routing through ship-to-ship transfers at Sohar demonstrates Saudi Aramco's operational flexibility in maintaining export levels despite infrastructure disruptions. By bypassing the damaged pipeline and utilizing alternative export routes, the kingdom is stabilizing supply to key Asian markets.

Company: Saudi Aramco has not yet commented on the arrangements outside office hours.

The move reassures global markets of Saudi Arabia's ability to maintain crude supply despite regional security challenges, directly impacting oil price stability and Asian refinery operations dependent on Saudi crude.