Saudi Arabia Sells 100 Million Barrels of Crude to Asia via Hormuz
Saudi Arabia has sold nearly 100 million barrels of crude to Asian buyers via the Strait of Hormuz since mid-last week after the East-West pipeline that bypasses the chokepoint went out of service. The volumes, sold for October and November delivery, were arranged with the kingdom handling logistics and shipping, according to trade sources cited by Bloomberg.
Why It Matters
The rerouting of Saudi exports through Hormuz represents a major short-term shift in global crude flows, moving roughly one day’s worth of global oil demand through a strategic chokepoint and helping to limit upward pressure on oil prices amid pipeline disruption.
Key Facts
- Volume sold: Almost 100 million barrels
- Delivery months: October and November
- Equivalent scale: Roughly one day of total global oil demand
- Seller: Saudi Aramco (Saudi oil giant)
- Route used: Strait of Hormuz (via ship-to-ship transfers at Sohar, Oman)
Since the middle of last week, Saudi Arabia has moved nearly 100 million barrels of crude to Asian buyers using shipments routed through the Strait of Hormuz, trade sources told Bloomberg. The shift followed the outage of the East-West pipeline — which normally bypasses Hormuz — prompting the kingdom to reroute cargoes that had been slated for loading at Ras Tanura. Buyers include a mix of Chinese refiners (both state-owned firms and so-called teapots), as well as refineries in India, South Korea and Japan. Sources said Saudi authorities offered to manage the logistics and deliver the cargoes, arranging ship-to-ship transfers at Sohar in Oman just outside the strait. Bloomberg’s reporting indicates the flurry of sales would more than double recent Saudi volumes moving to Asia via Hormuz. Riyadh has increased shuttle-shipping into the Strait to maintain flows while the East-West pipeline remains offline, a step that traders say has helped cap further gains in oil prices despite the outage. Saudi officials have partially restored the East-West pipeline this week, but full capacity — about 4 million barrels per day — is not expected to resume for several weeks. In the interim, higher shipments through Hormuz are supplying Asian refiners while Red Sea export routes are being repaired and restored.
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