Saudi Arabia reroutes more crude via Oman as pipeline attacks 

Saudi Aramco has offered additional cargoes of its flagship Arab Light crude, along with Arab Medium and Arab Heavy grades, to Asian refiners for loading through ship-to-ship

RIYADH: Saudi Arabia is expanding efforts to move crude oil outside the Strait of Hormuz after drone attacks damaged a key pipeline linking its oilfields to the Red Sea, according to people familiar with the matter.

Saudi Aramco has offered additional cargoes of its flagship Arab Light crude, along with Arab Medium and Arab Heavy grades, to Asian refiners for loading through ship-to-ship transfers near Oman’s Sohar port, the sources said. The location provides an alternative route outside the strategically important Strait of Hormuz.

The offers suggest that Aramco is seeking to increase the movement of Gulf crude through alternative export arrangements as disruptions to shipping through the waterway continue. Sources said the Saudi oil giant had made similar offers of Arab Medium and Arab Heavy crude to Asian customers in recent weeks.

Aramco did not comment on the reported offers.

Saudi Arabia has also increased crude loadings from its Ras Tanura and Juaymah terminals inside the Gulf. Satellite tracking monitored by Energy Aspects indicated that daily loadings had risen to roughly two very large crude carriers, representing around four million barrels.

Separate vessel-tracking data from Kpler showed four very large crude carriers at Ras Tanura on Wednesday, with a combined capacity of approximately eight million barrels.

The developments come as other Gulf oil producers also seek alternative arrangements for exporting crude outside the Strait of Hormuz. According to shipping and trading sources, some producers have secured vessels to transport supplies through the waterway, with tracking signals sometimes switched off.

The disruption has placed additional pressure on Saudi Arabia’s oil-export infrastructure. The kingdom had been using its East-West pipeline to transport crude to Yanbu on the Red Sea, allowing exports to bypass the Strait of Hormuz amid the conflict with Iran.

However, Saudi Arabia suspended the pipeline on Friday after it was damaged in drone attacks. The disruption contributed to a sharp rise in international oil prices, with global benchmarks reaching multi-month highs during the week.

An Asian buyer with crude cargoes scheduled for loading this month said it had received notification from Aramco that shipments from Yanbu would be delayed and rescheduled. The notice did not specify how long the disruption would last.

Saudi Arabia has also informed some European customers that certain September-loading crude cargoes would be cancelled, while crude loadings from Yanbu remained suspended, according to trading and shipping sources.

The latest measures underline the growing importance of alternative export routes as instability around the Strait of Hormuz continues to affect Gulf oil shipments and global energy markets.