Saudi Aramco resumes Gulf oil exports from Ras Tanura port after 4 months

Ras Tanura resumes operations

Located on Saudi Arabia’s eastern Gulf coast, Ras Tanura is the country’s biggest crude export terminal and one of the most important oil hubs in the world. According to the news agency Reuters, that before the US-Iran conflict disrupted shipping, the port was handling more than 5 million barrels of crude a day. It also houses Saudi Arabia’s largest refinery, which can process 550,000 barrels per day.

Shipping records show that Aramco’s last cargo from Ras Tanura departed for China on March 8. As tensions escalated and the Strait of Hormuz became inaccessible, the company diverted exports to its Red Sea terminal at Yanbu.

The disruption hit Saudi exports hard, with shipments averaging about 4 million barrels per day over the past three months, down from more than 7 million barrels per day in February.

Security concerns in Strait of Hormuz

Even as exports resume, uncertainty over the safety of shipping in the Gulf persists.

A cargo vessel reported a suspected attack on Thursday while sailing near Oman’s coast in the Strait of Hormuz, causing the UK Maritime Trade Operations (UKMTO) to temporarily suspend naval escort operations in the area.

According to Reuters, two US officials said Iranian forces had fired on the vessel. Iranian authorities but maintained that only ships travelling along designated routes would be guaranteed safe passage.

Oil prices

Despite the latest security scare, oil prices fell by more than $1 a barrel on Friday as traders focused on the steady return of crude supplies from the Gulf.

Saudi Arabia is not alone in ramping up exports. Iraq, Qatar, Kuwait and the United Arab Emirates have also increased crude shipments in recent days, while Iran has accelerated exports following a temporary easing of US sanctions. Shipping data showed additional empty VLCCs entering the Gulf to load crude.

Analysts say the regional supply recovery is gathering pace. Reuters cited Rystad Energy as estimating that production shut-ins across the Gulf have fallen to 9.6 million barrels per day from 11.7 million barrels per day just three weeks ago. The consultancy expects oil production across the region to return to normal by the end of the year.