Aramco Finds a New Way to Keep Saudi Crude Flowing to China
Saudi Arabia is not waiting for the Strait of Hormuz to return to normal to deliver its crude to Asia. It is building a workaround, one tanker handoff at a time. Saudi Aramco is offering more September crude to Asian buyers through ship-to-ship transfers outside Hormuz, according to Reuters, after s
Source: OilPrice.com
―
DW NOTE
Saudi Arabia is routing crude to China through alternative channels while the Strait of Hormuz handles barely half its normal traffic. Six months into Iran's blockade, Aramco's supply chains adapt faster than the oil price — WTI is down 26.9% from its yearly high despite a 4% drop in global supply. Markets price logistics, not scarcity.