Saudi Arabia is consulting customers on adding a loading option outside the
Strait of Hormuz to next year’s long-term crude supply contracts, formalizing
temporary transport arrangements used during the Iran war. Negotiations are
ongoing and must be concluded by year-end, sources said; if approved, the change
would alter delivery mechanics for the bulk of Saudi long-term sales. The
current practice of short transits through the Strait followed by ship-to-ship
transfers outside the waterway has been a key market-supply mechanism. ARAMCO is
also discussing allowing customers to nominate alternative pricing benchmarks
and potentially delivering crude directly to Asian buyers as part of a broader
push to expand global market share.
