Saudi oil flows shift through Oman as Aramco moves 60 million barrels

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Saudi oil exports reroute as Hormuz risks persist

Alternative shipping route helps restore Saudi crude flows

Saudi Aramco has sold around 60 million barrels of crude for September and October delivery using ship-to-ship transfers near the Omani port of Sohar. As Business Recorder reports, the oil is initially loaded at Saudi Arabia’s Ras Tanura terminal inside the Persian Gulf before being transferred to other vessels outside the Strait of Hormuz.

The arrangement has helped Aramco restore exports from Gulf ports to roughly 1–1.5 million barrels per day, matching or slightly exceeding August levels. The additional flows are helping offset part of the volumes lost after exports through Yanbu on the Red Sea slowed following the attack on the East-West pipeline.

Chinese and South Korean refiners are among the main buyers of the extra cargoes, with some volumes also heading to India and Japan.

Asian buyers gain an extra layer of protection

The new shipping structure is particularly important for Asia, the largest market for Saudi crude. Transfers near Sohar allow buyers to receive additional volumes without sending their final tankers deep into the Persian Gulf.

Japanese refiners have already said they have secured enough crude supplies at least through November. As CNA reports, Saudi deliveries never stopped completely because some cargoes were transferred outside the Strait of Hormuz. Petroleum Association of Japan Chairman Shunichi Kito said part of the crude moves through the strait at Saudi Arabia’s risk before being handed over to buyers outside the Gulf.

The workaround is becoming increasingly expensive, however. Freight rates for VLCCs, which can carry around 2 million barrels, reached a record 800 Worldscale points this week on routes from Fujairah to Asia, reflecting strong tanker demand and continued shipping risks.

Extra supply is already weighing on oil prices

Higher Saudi exports have started to ease fears of an immediate supply shortage. The outlook has improved further on expectations that Saudi Arabia could soon restore roughly half of the damaged East-West pipeline’s capacity.

Oil prices have already responded to the better supply picture. As Traders Union noted, Brent fell to $104.62 per barrel, while WTI declined to $100.02. Additional Saudi cargoes moving through Oman were among the factors that reduced concerns about an imminent shortage.

The geopolitical premium has not disappeared, though. Shipping through Hormuz remains heavily constrained, while the conflict in the Middle East continues to threaten infrastructure and maritime routes. Aramco’s ability to sustain these extra flows through Sohar may therefore become one of the key variables for oil prices over the coming weeks.

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