Saudi Oil Exports Reach Highest Level Since Iran Conflict Began

ILLUSTRATION UNSPLASH/matt brown

JAKARTA - Saudi Arabia's crude oil exports have risen to the highest level through the Strait of Hormuz since the Iran war disrupted the strategic shipping as the flow of shipments recovered after the Iran-US deal.

Bloomberg's report said four supertankers carrying oil from the Ras Tanura export terminal entered the Gulf of Oman after crossing the Strait of Hormuz.

The four ships, all operated by Saudi shipping company Bahri, were carrying around 8 million barrels of crude oil.

The movement is the largest number of departures of Saudi supertankers through the Strait of Hormuz since the peace deal came into force about two weeks ago.

The ships were part of a group of vessels more than 300 meters long that entered the Persian Gulf late last month before loading oil at Ras Tanura, one of the world's largest crude oil export terminals.

The increase in tanker activity reinforces indications that Saudi Arabia, the largest producer in the OPEC group, is increasing oil shipments after traffic in the Strait of Hormuz recovered.

Bloomberg also previously reported that Saudi Arabia's state-owned oil company, Saudi Aramco, sold 6 million barrels of crude oil in the spot market to buyers in Asia, including South Korea, Japan, and China.

Sales in the spot market are considered unusual because Saudi Aramco generally supplies oil to customers through long-term contracts.

Shipping traffic in the Strait of Hormuz has also increased in recent days. A number of ships are now more often passing in tandem to pass through the narrow lane.

As reported by ANTARA from Anadolu, Thursday, July 2, most of the ships use the United States-managed shipping corridor in Omani waters, while some others choose a route closer to the Iranian coast.

Currently, only a few Saudi oil tankers are still in the Persian Gulf. Of the four ships around Ras Tanura, two have signaled full loads, while another ship is expected to have just finished loading oil in recent days.

The Strait of Hormuz is one of the world's most important energy routes connecting oil-producing countries in the Persian Gulf with global markets. The route is a key route for the shipment of crude oil and liquefied natural gas (LNG) by sea.