Chinese Refiners Secure 6 Million Barrels of Crude via Fujairah Transfers

Saudi Aramco's trading division, Aramco Trading, has concluded a tender selling approximately seven million barrels of Khafji crude oil to refiners in China and South Korea, according to market traders. Chinese refiners secured the vast majority of the volume, taking six million barrels in total.

Traders reported that PetroChina, Shenghong Petrochemical, and Dongming Petrochemical each purchased two million barrels. A South Korean refiner purchased the remaining one million barrels for February delivery at a premium of three to four US dollars per barrel over January Dubai benchmark quotes.

Cargoes sold via ship-to-ship (STS) transfer off the coast of Fujairah in the United Arab Emirates traded at discounts of approximately five US dollars per barrel against Dubai reference prices. Located outside the Strait of Hormuz, Fujairah is being utilized by Saudi Aramco for alternative offshore transfers amid elevated maritime security risks in the Gulf.

This transaction follows an earlier tender in late September, in which Aramco Trading sold around ten million barrels of Khafji crude to buyers in China, India, and South Korea, with some cargoes discounted by eight US dollars per barrel against the Dubai benchmark.

Separately, shipping data cited by Lloyd's List indicates Chinese crude imports from the Middle East Gulf are rebounding toward pre-conflict levels alongside recovering commercial tanker voyages through the Strait of Hormuz. In contrast, Chinese crude liftings from Iran have declined to near zero following tightened naval enforcement at Iranian export facilities.