(Bloomberg) — Saudi Arabia is looking to sell oil from near Oman, indicating that the country might be following the UAE's lead in moving more oil through the Strait of Hormuz.
The state oil company, Saudi Aramco, is offering supplies on a ship-to-ship basis from locations such as Sohar in the Gulf of Oman. Sources familiar with the situation, who wished to remain anonymous since the details aren't public, mentioned that the types of oil being offered are Arab Medium and Arab Heavy, suggesting that these barrels likely originate from the Persian Gulf.
Currently, these offers are made exclusively to select Chinese refiners. Many refiners in China prefer the heavier, sulfur-rich oil produced by Aramco, as it suits their more complex refineries.
Saudi Aramco did not provide any comments on this matter.
Middle Eastern oil producers are actively transporting large amounts of crude oil out of the Persian Gulf, which helps stabilize oil prices and reduce concerns about inflation driven by energy costs. While Aramco's trading division sent some supplies through the Strait of Hormuz in May, the country's ability to reroute exports to its Red Sea port at Yanbu has made it less dependent on this important shipping route.
Recently, even shipments via the Red Sea have faced challenges due to a maritime blockade declared by Yemen’s Houthi militants against Saudi Arabia.
In recent weeks, there have been signs of increased activity at Saudi Arabia’s facilities in the Persian Gulf. Satellite images show that vessels capable of carrying at least 9 million barrels have loaded cargoes at or near the country's major Ras Tanura export facilities in the last week.
Additionally, Saudi Arabia has gathered a significant number of oil supertankers just outside the gulf.
In March, Aramco's CEO, Amin Nasser, mentioned that the pipeline to Yanbu mainly transports Arab Light and Extra Light oil. He also noted that the offshore fields, primarily located in the Persian Gulf, provide the country’s medium and heavy oil supplies.