Aramco Sells 4M Barrels to China Outside Hormuz

Saudi Aramco has sold at least 4 million barrels of crude oil to buyers in China for August 2026 delivery, with the cargoes arranged to load outside the Strait of Hormuz. The sales were completed through private negotiations rather than public tenders and involved two Chinese refiners.

The cargoes consist of heavier Arab Medium and Arab Heavy grades offered to selected Asian refiners. PetroChina and Sinochem each purchased 2 million barrels. Identified receiving points include the Quanzhou refinery operated by Sinochem, set to take about 2 million barrels, and Lianyungang port, home to Shenghong Petrochemical, which is due to receive another 2 million barrels.

To load the crude outside the Strait of Hormuz, Aramco used ship-to-ship transfers off Fujairah in the United Arab Emirates, alongside offers from locations off Oman's coast, including Sohar in the Gulf of Oman. Additional flows were rerouted via the East-West pipeline to Red Sea terminals such as Yanbu, an option used when transit through Hormuz carries higher risk or cost.

The deals form part of a broader 2026 pattern. Saudi crude exports to China have been trimmed relative to earlier months, with July loadings totaling around 12 million barrels. Aramco has increasingly relied on dual-loading options and rerouting via Yanbu and Ain Sokhna in Egypt to soften the impact of disruptions affecting the strait.

Exact prices, fees, or per-barrel premiums for these specific deals have not been publicly disclosed. Available references point only to premiums over benchmarks and record official selling price differentials to Asia, including a reported Arab Light premium of around +$19.50

The shift matters for the wider region because the Strait of Hormuz remains one of the world's most sensitive energy chokepoints. Flexible loading and rerouting strategies help keep supply steady for major buyers, supporting the reliability that the Kingdom's energy sector aims to maintain.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving