After the east-west pipeline was shut down, Saudi Aramco urgently switched export routes to supply Asian refiners from outside Hormuz

The Zhitong Finance App learned that after the suspension of Saudi Arabia's east-west oil pipeline, causing cross-border transportation to the Red Sea coast to be interrupted, Saudi Arabia is stepping up efforts to carry out spot sales of crude oil from regions other than the Strait of Hormuz.

Saudi Aramco sold about 20 million barrels of crude oil to Asian refiners this week. The crude oil can be picked up from the waters off the Strait of Hormuz this month and next month, according to an informed trader. Due to the sensitive information involved, these traders requested anonymity. Buyers include Chinese state-owned and independent refiners, as well as other importers from East Asia, they said.

The global oil market is closely watching the impact of the pipeline's shutdown. The pipeline was once the main channel to help Saudi Arabia circumvent the turmoil in the Strait of Hormuz caused by the war with Iran. The pipeline was shut down after being attacked last week, and there is currently no official information on when it will resume operations. Spot sales through the Persian Gulf are increasing, indicating that Riyadh is trying to switch back to its traditional shipping routes, although shipping risks remain.

After the pipeline was shut down, Saudi Aramco delayed the delivery of crude oil to some European customers. This batch of crude oil was originally planned to be shipped from Yanbu Port in the Red Sea at the western end of the pipeline. Meanwhile, Asian refiners have asked the state-owned energy giant to provide an update on its future loading arrangements at Yanbu Port.

Traders said that the spot crude oil sold by Saudi Aramco will be shipped ship-to-ship in the Gulf of Oman from September to October. This means that although this crude oil still has to pass through the Strait of Hormuz, since the pickup location is outside the strait, the buyer is not responsible for this section of the voyage.