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Mideast producers offer more STS crude outside Hormuz

  • Market: Crude oil
  • 26/08/26

State-controlled producers in the Mideast Gulf have offered more cargoes loading on a ship-to-ship (STS) transfer basis outside the strait of Hormuz, as part of their efforts to boost exports.

Saudi Arabia's state-controlled Saudi Aramco offered crude loading between 5-15 September through STS transfers near Sohar in the Gulf of Oman, according to market sources. The grades and volume offered could not be directly confirmed. The offer was valid until 5pm Singapore time (9am GMT) on 26 August, sources said.

Aramco may have only shown the offer to refiners in China, market sources said. Three Chinese state-owned refiners and one private-sector refiner recently took up Aramco's previous offer of late August-loading Arab Medium and Arab Heavy cargoes on an STS basis near Sohar.

Other refiners in Asia-Pacific told Argus that they were not notified of offers for September-loading Saudi crude.

Aramco's offer of spot September-loading crude comes as details of its September term volume allocations for Asia-Pacific customers remain scant. Aramco was selling its crude almost entirely on a term basis, before the US-Iran war effectively closed the strait of Hormuz.

Qatar's state-owned QatarEnergy (QE) also recently issued a tender offering crude loading on an STS basis. The tender offered medium sour grades Al-Shaheen and Qatar Marine loading between 1-15 October via STS transfers near Fujairah or Sohar, according to a tender document seen by Argus. Potential buyers were invited to bid for up to 2mn bl of the grades, and were requested to submit bids at a differential to the monthly average of Dubai assessments. The tender closes on 26 August with same-day validity.

QE's latest tender comes just a day after it closed another tender that offered September and October-loading cargoes from terminals within the Mideast Gulf. The tender closed on 25 August, but the results were slow to surface.

STS loadings have been the main way for buyers to access grades that originate from within the Mideast Gulf, as sellers take on the risk of transiting the strait of Hormuz. But recent efforts by Iran's Persian Gulf Strait Authority (PGSA) to tighten its control of the strait could threaten these STS operations.


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