Saudi Arabia resumes oil loadings and sales inside Strait of Hormuz

• Three VLCCs loaded 6 million barrels total from Juaymah and Ras Tanura terminals after a three-week gap, with six more vessels potentially loading later in August
• Saudi Arabia offered alternative loadings from Egypt's Sidi Kerir port, but only 670,000 barrels per day are expected this month versus the pre-blockade 4 million bpd from Yanbu
• The Sidi Kerir route to Asia is proving unpopular with Chinese refiners due to significantly longer voyage times and higher freight costs

Summary: Saudi Arabia Resumes Oil Loadings in Strait of Hormuz

Key Development: Saudi Aramco has resumed oil loading operations from terminals inside the Strait of Hormuz following a multi-week halt caused by attacks on its tanker fleet during U.S.-Iran tensions last month.

Operations Resumed:

• Three VLCCs (Malaysia Prosperity, Algeria Prosperity, Singapore Prosperity) loaded 2 million barrels each from Juaymah and Ras Tanura terminals between August 12-16
• Shipping data shows a three-week gap since previous loadings at these ports
• Six additional VLCCs scheduled to load later in August
• Aramco has offered Asian refiners spot cargoes of Arab Medium and Arab Heavy crude for ship-to-ship transfers off Fujairah, UAE

Strategic Adjustments:

• Saudi Aramco deploying Saudi tankers (including Bahri-operated vessels) and Sinokor ships for Hormuz transit
• Nine Bahri VLCCs positioned near UAE and Oman or heading to Fujairah
• Alternative exports through Egypt's Sidi Kerir Mediterranean port reaching 670,000 barrels per day for August (up from zero in previous three months)

Market Impact:

• Resumption should ease tight supply of heavier crude grades used for residue fuel production
• Sidi Kerir alternative proving unpopular with Asian customers, particularly Chinese refiners, due to extended voyage times and elevated freight costs
• Overall Saudi exports remain constrained by Houthi blockades in the Red Sea, affecting the Yanbu route that previously handled 4 million barrels per day

Companies Mentioned: Saudi Aramco, Sinokor, Bahri

This development signals gradual normalization of Saudi oil flows through critical transit routes despite ongoing regional tensions.