SINGAPORE, July 2 (Reuters) - At least five supertankers carrying a total of 10 million barrels of Saudi oil have passed through the Strait of Hormuz, as Saudi Aramco shifts to spot pricing to boost sales in Asia, according to trade sources and shipping data.
On Friday, Saudi Aramco resumed loading at Ras Tanura, the largest oil port in the world, after nearly four months of inactivity. The company is increasing its loadings and shipments to Asia, contributing to an oversupply that has seen Brent crude prices drop to around $70 a barrel from nearly $120 in March, following a temporary peace deal between the U.S. and Iran.
In order to meet demand, the world's leading oil exporter is not only using its Bahri tanker fleet for deliveries but is also offering crude to its Asian clients at spot prices. This move is aimed at attracting buyers amid growing competition, according to unnamed trade sources.
Saudi Aramco, being one of the last major Gulf producers to kickstart exports from the Gulf region, did not provide any comments on the situation.
Typically, Aramco sells oil through long-term contracts at official selling prices (OSPs) set monthly. However, its OSPs for July-loaded cargoes for Asia, determined in early June, are at premiums of $6 to $10 a barrel. In contrast, other Middle Eastern oil sales for July to August have seen discounts as the U.S.-Iran peace talks progress, with many refiners already equipped with sufficient oil through August.
One source mentioned that 6 million barrels of crude for July loading have been offered to Aramco's regular Asian customers. Another source indicated that the pricing is “very attractive” for buyers in China.
Traders anticipate that Aramco will make significant cuts to its OSPs for August.
VLCCS HEADING TO CHINA AND JAPAN
Out of the five very large crude carriers that have recently left the strait, two are en route to Japan, and two are headed to China, as indicated by shipping data from LSEG and Kpler.
Sinochem's Quanzhou refinery will receive 2 million barrels, while another 2 million barrels are on their way to Lianyungang port, home to Shenghong Petrochemical, according to the data.
Additionally, four more VLCCs are positioned near the Ras Tanura port, with three waiting to load and one already fully loaded, as reported by the data.
Ras Tanura is located on Saudi Arabia's eastern coast along the Gulf, just west of the Strait of Hormuz. Prior to the conflict begun by U.S. and Israeli attacks on Iran, it was exporting over 5 million barrels per day.
As a precaution during the war, Saudi Aramco shut down its largest refinery at Ras Tanura, which has a capacity of 550,000 barrels per day.