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08/27/2026 | Press release | Distributed by Public on 08/27/2026 08:51

Saudi Aramco Expands Offshore Oil Sales Outside Hormuz with China-bound Cargoes

Saudi Aramco has offered additional crude for September loading outside the Strait of Hormuz, seeking to maintain exports to Asian buyers while the U.S.-Iran war continues to disrupt traffic through the strategic waterway, according to four sources cited by Reuters.

The state oil giant has begun a second consecutive week of sales of Arab Medium and Arab Heavy crude to Asian buyers, with cargoes offered through ship-to-ship transfers off Fujairah in the United Arab Emirates and Sohar in Oman, both located outside the Strait of Hormuz, the sources said.

Bids for the latest cargoes were due on Wednesday.

The move highlights how Saudi Arabia is adapting its oil-export operations to the security risks surrounding Hormuz, through which roughly one-fifth of global oil and gas supplies moved before the war between the United States and Iran began on Feb. 28. Instead of relying on conventional loading and transit routes through the strait, Aramco is increasingly using ship-to-ship transfers outside the waterway to move crude onto vessels that can continue toward Asian destinations.

Shipping data also indicates that some tankers carrying Saudi crude have switched off their tracking systems while transiting the Strait of Hormuz, a measure that can make vessels more difficult to identify or track during periods of heightened security risk.

The latest sales come after Aramco sold at least 4 million barrels of crude to Chinese buyers this month, underscoring the company's efforts to maintain flows to one of its most important markets despite the disruption.

Two very large crude carriers carrying a combined 4 million barrels of Saudi oil were headed to China after taking on their cargoes through ship-to-ship transfers off Sohar, according to shipping data from Vortexa and Kpler.

The VLCC Singapore Prosperity transferred its Saudi crude cargo around Aug. 22 to the Xin Hui Yang, which is expected to arrive at the eastern Chinese port of Ningbo on Sept. 15, the data showed. Another VLCC, Algeria Prosperity, transferred its cargo on Tuesday to the Xin Han Yang. That vessel is expected to reach Zhanjiang in southern China on Sept. 12.

Both shipments are destined for Sinopec, according to Vortexa.

The shipments demonstrate how ship-to-ship transfers are becoming an important mechanism for maintaining crude flows while limiting the exposure of loaded tankers to the most vulnerable section of the route.

Aramco also sold at least 4 million barrels of heavier crude grades to PetroChina and Sinochem last week, according to the sources, after restarting oil loading operations at the Ras Tanura port earlier in August.

The additional supply offers come as Asian refiners seek to secure alternative crude supplies amid uncertainty over the availability and cost of Middle Eastern oil. China is particularly important to Aramco because of its enormous refining sector and long-standing dependence on Middle Eastern crude. Maintaining shipments to Chinese refiners provides Saudi Arabia with an important outlet even as the security environment makes conventional tanker movements more difficult.

The logistics, however, are becoming more complicated. Ship-to-ship transfers require additional vessels, coordination, and time, while operating in waters outside the main loading and transit routes can add costs to the supply chain.

The use of dark shipping practices, including vessels switching off tracking signals, also highlights the elevated risks facing oil transportation in the region. Such measures can make it harder for market participants to determine the location and status of cargoes, potentially increasing uncertainty around available supply.

The disruption has broader implications for global oil markets because the Strait of Hormuz remains one of the world's most important energy chokepoints. Even when producers can reroute or transfer cargoes outside the strait, replacing the normal flow of tankers is not straightforward.

Saudi Arabia has some of the world's largest crude production capacity and substantial influence over global oil supply. Its ability to continue exporting through alternative logistics therefore provides an important buffer for the market. But the latest moves also show the limits of that flexibility. Aramco is not eliminating the risks associated with Hormuz. It is reorganizing its shipping operations to reduce exposure to them.

The repeated offering of cargoes outside the strait suggests the disruption is becoming sufficiently persistent for producers and buyers to adapt their logistics rather than rely on a quick return to normal shipping patterns.

The critical issue for oil markets will be whether these alternative arrangements can be maintained at scale. Energy analysts note that if Aramco and other Gulf producers can continue moving significant volumes through ship-to-ship transfers and alternative routes, the physical supply impact of the Hormuz disruption could be contained.

But if security risks intensify or tanker availability becomes constrained, the cost of moving Middle Eastern crude could rise sharply and threaten the reliability of supplies to Asian refiners.

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Tekedia Capital LLC published this content on August 27, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 27, 2026 at 14:51 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]