Saudi Aramco Ramps Up Oil Exports From Ras Tanura, Shifts To Spot Pricing

At least five supertankers carrying a combined 10 million barrels of Saudi crude have left the Strait of Hormuz after loading from Ras Tanura, the world’s largest oil port, according to trade sources and shipping data. Aramco resumed loadings from the port on Friday after nearly a four month halt tied to the earlier conflict in the region.

Spot Pricing Used To Boost Asian Sales

Saudi Aramco has begun offering crude to Asian buyers on a spot pricing basis rather than its usual long-term contracts, aiming to attract demand as competition among suppliers increases. The move adds to a growing supply glut that has pushed Brent crude down to around $70 a barrel from near $120 in March, following progress on the US-Iran peace deal. Traders said pricing has been especially attractive for Chinese buyers, with one source noting 6 million barrels of July-loading crude offered to regular Asian customers.

Tankers Bound For China And Japan

Shipping data shows two of the five tankers heading to Japan and two to China, including deliveries to Sinochem’s Quanzhou refinery and a port near Shenghong Petrochemical. Four additional tankers remain near Ras Tanura, with most still waiting to load.

Prices Expected To Fall Further

Aramco’s official prices for July cargoes to Asia remain at a premium of $6 to $10 a barrel, even as competing Middle Eastern oil has moved to discounts. Traders expect Aramco to cut its official selling prices sharply for August as regional supply continues to recover.