Saudi Aramco resumes oil loading at Ras Tanura in boost to supply
Written by: Florence Tan and Siyi Liu
SINGAPORE, June 26 (Reuters) – Saudi Aramco resumed crude loadings from its Ras Tanura terminal in the Gulf on Friday after a nearly four-month pause, shipping data showed, as the world’s biggest oil exporter joined the rush to move cargo amid industry hopes of a return to normality.
The Saudi oil shipments came despite a ship belonging to Taiwan’s Evergreen Marine being hit by an unknown object in the Strait of Hormuz on Thursday.
Middle Eastern producers were ramping up oil and gas production and exports ahead of an interim deal between the United States and Iran to end the war and reopen the strait through which a fifth of the world’s oil and liquefied natural gas supplies pass.
Data showed that two Very Large Crude Carriers controlled by Saudi shipping arm Bahri were seen loading crude oil at Ras Tanura, the world’s largest oil port, while another was waiting nearby. Each VLCC has a loading capacity of 2 million barrels of oil.
Saudi Aramco, which is among the last major Gulf producers to continue exporting from within the Gulf, could not immediately be reached for comment after business hours.
British naval agency UKMTO halted the operation to escort ships across the strait after the attack on the cargo ship, reigniting concerns about whether the preliminary agreement to end the Iran war will be valid.
While two US officials told Reuters that Iran opened fire on the ship, Iran’s Persian Gulf Strait Authority, which Tehran established to manage requests for ships to pass through the strait, said that safe passage would not be guaranteed to ships outside the routes it had determined.
RAS TANURA PORT
Ras Tanura is located on Saudi Arabia’s eastern coast in the Gulf and is west of the Strait of Hormuz. Before the conflict, it was exporting more than 5 million barrels of crude oil per day. The country’s largest domestic refinery, with a capacity of 550,000 barrels, is located in Ras Tanura, which was closed as a precautionary measure during the war.
LSEG data showed that Aramco last loaded cargo from the Chinese port of Ras Tanura on March 8, and was forced to divert its exports to the Red Sea port of Yanbu after Iran blockaded the strait and prevented ships from entering the Gulf during its war with the United States and Israel.
Data showed that the war caused Saudi crude exports to fall from 7 million barrels per day in February to around 4 million barrels per day in the past three months.
OIL SHIFTS IN RISING SUPPLY
Global oil prices fell more than $1 a barrel on Friday after reports of an attack on a cargo ship grew. Supply pressure is increasing after crude oil shipments through the Bosphorus this week reached their highest level since the conflict began. [O/R]
