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Ship-to-ship oil transfer capacity in the Gulf of Oman has reached its limit as Saudi Arabia redirects crude exports through the Strait of Hormuz following the attack on its East-West Pipeline, which halted exports from the Red Sea port of Yanbu. Saudi Aramco has sold more than 60 million barrels of crude for ship-to-ship transfer off Sohar, Oman, during September and October. Kpler data showed Saudi crude exports through Hormuz were on track to rise to approximately 3.6 million barrels per day in September, up from around 900,000 bpd in August. The surge in volumes has increased demand for very large crude carriers, reduced available tanker capacity, raised freight costs, and prompted buyers to explore alternative transfer locations in India and Malaysia.

Gulf of Oman Ship-to-Ship Transfers Reach Limit as Saudi Exports Surge

Ship-to-ship oil transfer capacity in the Gulf of Oman has reached its limit as Saudi Arabia redirects crude exports through the Strait of Hormuz following the attack on its East-West Pipeline, which halted exports from the Red Sea port of Yanbu. Saudi Aramco has sold more than 60 million barrels of crude for ship-to-ship transfer off Sohar, Oman, during September and October. Kpler data showed Saudi crude exports through Hormuz were on track to rise to approximately 3.6 million barrels per day in September, up from around 900,000 bpd in August. The surge in volumes has increased demand for very large crude carriers, reduced available tanker capacity, raised freight costs, and prompted buyers to explore alternative transfer locations in India and Malaysia.

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