SAUDI ARAMCO SELLS CHINA CRUDE OUTSIDE HORMUZ

Developing story: Cargo nominations, route choices, ship-to-ship schedules and Chinese refinery demand may change as the Hormuz disruption continues.

Saudi Aramco has sold at least 4 million barrels of crude loading outside the Strait of Hormuz to two Chinese refiners, according to Reuters reporting based on trade sources. The deal shows how producers and buyers are adapting to a waterway that remains central to global energy supply but increasingly difficult to use with confidence.

The cargoes will load through ship-to-ship transfers off Fujairah in the United Arab Emirates, Reuters reported. PetroChina and Sinochem each bought 2 million barrels of heavier Saudi grades at premiums, the sources said. The cargoes were offered through private negotiations with some Asian refiners.

The transaction matters because it provides a partial workaround for Hormuz disruption. Fujairah sits outside the strait and has long served as an oil-trading and bunkering hub. Loading there can reduce the risk of sending ships into or through the most contested part of the Gulf, although it does not eliminate wider regional shipping danger.

Saudi Aramco resumed some oil loading from inside the Strait of Hormuz last week and has more tankers waiting to load, according to Reuters. The outside-Hormuz sales therefore appear to be part of a flexible export strategy rather than a complete shift away from the strait.

Chinese refiners have strong incentives to secure supply. China is one of the world’s largest crude importers, and disruptions to Gulf flows can affect refinery margins, fuel markets and industrial planning. Paying premiums for safer loading may be preferable to accepting delays or insurance risk on more exposed routes.

The choice of heavier grades is also important. Arab Medium and Arab Heavy can be valuable to refiners configured for more complex processing and can yield products including diesel and residual fuels. If heavy crude supply becomes constrained, those refiners may face reduced flexibility or higher costs.

The sales also reflect broader Gulf adaptation. Iraq is considering multiple export mechanisms, and Saudi Arabia has been using alternative routes including Yanbu and Egypt’s Sidi Kerir terminal when Red Sea or Hormuz pressure rises. These measures keep some cargo moving, but they cannot fully substitute for a secure Hormuz corridor at normal scale.

What is confirmed is that Saudi Aramco sold at least 4 million barrels of crude loading outside Hormuz to Chinese buyers. What remains unresolved is whether this becomes a larger export pattern, how much premium buyers will pay for safer routes and whether attacks or political pressure disrupt Fujairah-linked transfers.

Fact-check date: August 20, 2026. Article type: News. Sources: Reuters; Saudi Aramco; Kpler; Vortexa. Developing note: Cargo nominations, route choices, ship-to-ship schedules and Chinese refinery demand may change as the Hormuz disruption continues.