Saudi Arabia is in talks with customers to offer oil loadings next year outside the Strait of Hormuz in long-term contracts, formalizing a system used during the Iran war. Discussions must conclude by year-end. If approved, it would mark a significant change in the source file, not in the generated JSON.
The JSON I output should only contain the bulk of the kingdom's supply. The war in its eighth month has sent traditional oil shipping routes into turmoil with Hormuz severely disrupted. Major Gulf exporters have been forced to adapt to keep customers satisfied, with shuttles through the strait emerging as a crucial system to keep markets supplied as competition for buyers picks up.
State-run Saudi Aramco is also discussing other changes, including a choice of pricing benchmarks and delivering cargoes all the way to customers in Asia. No final decisions have been made, and details including pricing, freight and eligible volumes remain under discussion. Aramco and the Saudi Energy Ministry didn't respond to requests for comment.
Before the conflict, customers arranged vessels at Ras Tanura. Since the war began, some shipowners have been reluctant to enter Hormuz, giving rise to the shuttling system. Aramco has been supplying its three main export grades using these shuttles.
Recently, the company has also allowed some buyers to conduct ship-to-ship transfers off the coast of India. These options could allow Aramco to capture gains from soaring shipping costs. Some Asian customers have also been in discussions to price long-term purchases against Brent futures instead of Dubai and Oman benchmarks.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing