Reuters reported that Aramco sent a huge shipment of crude oil to Asian markets, after five supertankers carrying about 10 million barrels left Ras Tanura port via the Strait of Hormuz.
This move coincides with the company's decision to adopt spot pricing to accelerate its sales in the region.
Saudi Aramco, the giant Saudi oil company, resumed loading operations at Ras Tanura, the world's largest oil port, on Friday after a nearly four-month hiatus. The company is working to increase loadings and shipments to Asia, adding to the immediate surplus that has driven Brent crude prices down to around $70 a barrel from nearly $120 in March following the initial peace agreement between the United States and Iran.
In addition to using a fleet of tankers belonging to Bahri to deliver shipments, the world's largest oil exporter offered crude oil to its Asian customers on a spot basis to attract demand as competition intensifies among suppliers, according to several trading sources who declined to be identified due to the sensitivity of the matter.
Aramco typically sells oil through long-term contracts at official selling prices (OSPs) set by the producer each month. However, its OSPs for July-loading cargoes to Asia, set in early June, carry premiums of between $6 and $10 per barrel, while other Middle Eastern oil sales for July-August have fallen to lower levels following progress in talks between the US and Iran, with most refiners having already purchased enough oil to last until August.
One source said that six million barrels of crude oil to be loaded in July were offered to Aramco's usual Asian customers. Another source said the prices were very attractive to Chinese buyers.
Traders expect Aramco to sharply reduce its official selling prices for August.
