Aramco uses Gulf of Oman handoffs to keep China-bound oil moving

Traders say Saudi Aramco has sold about 4 million barrels of Arab Medium and Arab Heavy crude to PetroChina for September loading through the Gulf of Oman. The arrangement uses ship-to-ship transfers: Saudi tankers carry the crude across the Strait of Hormuz, then hand it to the buyer’s vessel east of the strait, where it can continue to China. That does not eliminate the risk in Hormuz, but it means Chinese refiners do not have to send their own tankers through its most exposed stretch. It is Aramco’s second such sale this month, suggesting this costly, more complicated relay is becoming a practical way to preserve Asian exports while normal shipping conditions remain uncertain.