Saudi Aramco has resumed oil loadings from Ras Tanura, the world’s largest oil export terminal, following a nearly four-month suspension, according to trade sources and shipping data. The Saudi state oil company is accelerating shipments primarily to Asia and shifting to spot pricing to enhance sales, amid increased competition and market uncertainties.
At least five very large crude carriers (VLCCs) have recently exited the Strait of Hormuz, transporting a combined total of around 10 million barrels of Saudi crude. Two of these vessels are en route to Japan, while two others are heading to China, with specific deliveries planned for the Quanzhou refinery and the port of Lianyungang, home to Shenghong Petrochemical.
Saudi Aramco traditionally sells crude through long-term contracts using official selling prices (OSPs) announced monthly. However, sources indicate the company is now offering some cargoes on a spot basis in Asia to stimulate demand. The current OSPs for July-loading crude are priced at premiums ranging from $6 to $10 per barrel. This contrasts with other Middle Eastern suppliers, whose August-July sales are being offered at discounts, reflecting improved prospects following an interim US-Iran peace agreement.
Before the suspension, Ras Tanura was exporting over 5 million barrels per day (bpd). The 550,000 bpd refinery on site was shut down as a precaution amid rising tensions and regional conflicts, including actions by US and Israeli forces against Iran. The recent resumption of exports marks the last major Gulf producer to return to shipments from inside the Gulf following the disruption.
Trade sources report that about 60 million barrels of crude for July loading have been offered to Saudi Aramco’s regular Asian customers, with pricing described as "very attractive," especially for Chinese buyers. Market participants anticipate a notable reduction in Saudi Aramco’s OSPs for August cargoes as the company adapts to the evolving supply dynamics.
In addition to the vessels underway, shipping data shows four more VLCCs positioned near Ras Tanura—three awaiting loading and one fully loaded—highlighting the company’s ramp-up in operations. Saudi Arabia continues leveraging its Bahri tanker fleet to distribute the crude.
The resurgence of Saudi crude exports from Ras Tanura contributes to a growing prompt supply glut in Asia, which has pressured Brent crude prices down to around $70 per barrel from nearly $120 earlier this year. This price decline coincides with positive developments in US-Iran relations and increased market availability of Middle Eastern crude. Saudi Aramco declined to comment on these developments.