Saudi Arabia reportedly sells nearly 100000000 barrels of crude oil to Asia and assumes transportation risk; Hormuz shipping remains uninterrupted

AT A GLANCE

According to informed traders, Saudi Arabia sold nearly 100000000 barrels of crude oil to Asian buyers, with Saudi Aramco handling the logistics arrangements.

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Saudi Arabia sold nearly 100000000 barrels of crude oil to Asian buyers and assumed the transportation risk

BlockBeats reports that September 24, according to informed traders, Saudi Arabia has sold nearly 100000000 barrels of crude oil, with deliveries concentrated in October and November, with buyers including refineries in India, Japan, and South Korea. This crude oil will continue to be transported to Asia through the Strait of Hormuz, a volume equivalent to approximately 1 days of global oil demand, meaning that the volume of crude oil recently flowing from Saudi Arabia to Asia through the strait could more than double.

As shipping risks in the Strait of Hormuz have risen and freight rates have surged, an increasing number of Asian refineries are unwilling to arrange tankers to enter high-risk waters themselves. In this sale, Saudi Aramco proactively assumed responsibility for logistics, transporting the crude oil directly to Asian customers, effectively transferring some vessel, insurance, and navigation risks from the buyers to the seller.

Shipping through the Strait of Hormuz has not been completely disrupted. Rystad Energy estimates that approximately 6000000 to 7000000 barrels of crude oil are still transported daily via the southern route through the Strait of Hormuz, while approximately 2000000 barrels are exported via pipelines through the United Arab Emirates. However, transportation costs have surged sharply. Windward data shows that spot rates for very large crude carriers rose at one point this month on 11 days to 1000000 USD per day, compared with a normal level of approximately 30000 to 50000 USD.

Meanwhile, the East-West Pipeline connecting Saudi Arabia's eastern oil fields with the Red Sea port of Yanbu is gradually resuming operations, but has not yet fully returned to service. Bloomberg, citing traders, reported that Saudi Aramco remains in the early stages of restarting operations and hopes to achieve a meaningful recovery by this Saturday.

With diversion capacity among shipping through the Strait of Hormuz, Red Sea exports, and the East-West Pipeline not yet fully restored, transportation routes and logistics costs are becoming important factors affecting the actual supply of Middle Eastern crude oil and Asian refineries' landed prices.

Original link https://m.theblockbeats.info/flash/368847

Key points

According to informed traders, Saudi Arabia has sold nearly 100000000 barrels of crude oil to Asian buyers since the middle of last week.
Deliveries are concentrated in October and November, with buyers including refineries in India, Japan, and South Korea.
The article states that this crude oil will continue to be transported to Asia through the Strait of Hormuz.
Saudi Aramco proactively assumed responsibility for logistics in the sale, transporting the crude oil directly to Asian customers.
Rystad Energy estimates that approximately 6000000 to 7000000 barrels of crude oil are still transported daily via the southern route through the Strait of Hormuz, while approximately 2000000 barrels are exported via pipelines through the United Arab Emirates.
Windward data shows that spot rates for very large crude carriers this month 11 days at one point rose to 1000000 USD per day, compared with the normal level stated in the article of approximately 30000 to 50000 USD。
The article states that the East-West Pipeline is gradually resuming operations but has not yet fully returned to service.
Bloomberg, citing traders, reported that Saudi Aramco remains in the early stages of restarting operations and hopes to achieve a meaningful recovery by this Saturday.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Asian refineries are unwilling to arrange tankers to enter the high-risk waters mentioned in the article themselves, so Saudi Aramco is responsible for delivering the crude oil to customers. According to the article, this transfers some vessel, insurance, and navigation risks from the buyers to the seller. Crude oil is still being transported through the strait, but tanker rates have risen significantly, and alternative transportation routes have not yet fully recovered.

Why it matters to readers

The original article states that transportation routes and logistics costs are becoming important factors affecting the actual supply of Middle Eastern crude oil and the landed prices paid by Asian refineries. Even after the crude oil has been sold, route risks, freight rates, and the extent of recovery of alternative pipelines may still affect actual delivery.

Beginners should focus on distinguishing between “the crude oil has already been sold” and “the crude oil can be delivered smoothly at an acceptable cost”: this information shows that transportation arrangements, insurance, and tanker rates may also affect the final landed cost paid by refineries.

Risks and unknowns

Nearly __BIBIBI_NUM The scale of the 100000000-tanker oil sale, the range of buyers, and transport arrangements mainly come from accounts by traders familiar with the transaction; the original article provided no public documents for verification.
It remains uncertain whether transit volumes and shipping risks in the Strait of Hormuz will continue to change.

Saudi Arabia reportedly sells nearly 100000000 barrels of crude oil to Asia and assumes transportation risk; Hormuz shipping remains uninterrupted

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