Saudi Aramco sells millions of barrels of crude to China via spot tenders

Saudi Aramco has sold significant quantities of crude oil to Chinese refiners through rare spot tenders, bypassing the Strait of Hormuz to mitigate supply chain risks. Reports indicate that PetroChina and Sinochem Group purchased 2 million barrels each of Arab Medium and Arab Heavy grades, with a total purchase reaching approximately 10 million barrels when including other major players like Unipec and Rongsheng Petrochemical.

The shipments are planned for loading outside the Strait of Hormuz, specifically via ship-to-ship transfers near Fujairah in the United Arab Emirates. This move comes amid heightened geopolitical tensions in the region, which have prompted Asian buyers to seek more secure and diversified supply routes.

This large-scale spot buying is considered unusual, as Chinese refiners typically rely on long-term contracts. The shift toward spot purchases suggests that refiners are capitalizing on price discounts offered by Saudi Arabia as it competes for market share in Asia, despite the geopolitical uncertainties affecting traditional shipping routes.