Saudi Arabia is emulating the UAE by expanding its offshore crude oil transfer, planning to sell medium and heavy crude oil from offshore Oman.

Saudi Arabia is seeking to sell crude oil to buyers offshore near Oman, indicating that amid ongoing disruptions to shipping in the Strait of Hormuz, Saudi Arabia may be following the UAE's lead by employing ship-to-ship transfers and other methods to export more crude oil out of the Persian Gulf to maintain supply. According to informed sources, Saudi Aramco, the state-owned oil giant, is offering crude oil deliveries on a ship-to-ship basis, with delivery locations that include near Sohar in the Gulf of Oman. The types of crude oil being sold include Arab Medium and Arab Heavy. Since Saudi Arabia's medium and heavy crude primarily comes from offshore oil fields in the Persian Gulf, it is likely that these shipments were first transported from within the Persian Gulf before being transferred to offshore Oman for sale. Saudi Aramco declined to comment on this. Recently, major oil-producing countries in the Middle East have been actively seeking alternative transport methods to move large amounts of crude oil from the Persian Gulf to regions beyond the Strait. Against the backdrop of rising transport risks in the Strait of Hormuz, these additional supply channels help alleviate market concerns over significant interruptions to Middle Eastern oil exports and somewhat curb the risks of rising international oil prices and inflation driven by energy prices. Compared to other Persian Gulf oil-producing countries, Saudi Arabias expansion of offshore transshipment has been relatively slow due to its east-west pipeline that connects the Persian Gulf to the Red Sea, allowing some crude oil to be transported to the port of Yanbu on the Red Sea coast, thus reducing dependency on the Strait of Hormuz. However, in recent weeks, this alternative route has also faced new risks. The Yemeni Houthi movement announced a naval blockade against Saudi Arabia, increasing uncertainty for crude oil exports transported via the Red Sea. At the same time, recent signs indicate that crude oil shipment activities on the Saudi side of the Persian Gulf are rebounding. Satellite images show that in the past week, tankers with a total capacity of approximately 9 million barrels completed loading at the Saudi crude oil export hub of Ras Tanura or nearby facilities. Saudi Arabia has also amassed a large number of very large crude carriers in offshore waters of the Persian Gulf to support further crude oil transshipments. Amin Nasser, CEO of Saudi Aramco, stated in March this year that the east-west pipeline to Yanbu primarily transports Arab Light and Arab Extra Light crude oil. In contrast, most of Saudi Arabia's offshore oil fields are located within the Persian Gulf and primarily produce Arab Medium and Heavy crude oil. This further indicates that the medium and heavy crude oil sold near Sohar in the Gulf of Oman has likely been shipped across the Strait of Hormuz. With both the Strait of Hormuz and the Red Sea facing geopolitical risks in two critical energy transport corridors, Saudi Arabia's expansion of ship-to-ship crude oil trading near the Gulf of Oman demonstrates that Middle Eastern oil-producing countries are maintaining exports through more flexible logistics and transshipment arrangements. Whether such crude flows "bypassing traditional shipping methods" can be sustained will also be an important factor influencing global crude oil supply and prices.