Saudi Aramco restarts Ras Tanura crude loadings after 4-month halt

Saudi Aramco resumed crude loadings at the Ras Tanura terminal Thursday after a nearly four-month halt, with two very large crude carriers beginning to load and a third vessel preparing to berth, Kpler data show.

The two VLCCs, operated by Saudi shipping firm Bahri, were seen loading at the world's largest oil port, with a third carrier waiting nearby, according to shipping data. The restart follows a period of heightened tensions in the Strait of Hormuz, where a vessel associated with Taiwan's Evergreen Marine was hit in late May, disrupting one of the world's most critical energy chokepoints through which about 20 million barrels of oil pass daily, according to the US Energy Information Administration.

The resumption suggests Saudi Arabia expects the Strait of Hormuz to remain open after an interim US-Iran agreement to end hostilities, according to Kpler. Qatar has also begun re-entering Asian crude markets as shipping lanes stabilize, with cargoes heading to buyers in South Korea and India, marking the first such shipments in months.

The return of Saudi crude to global markets could weigh on crude prices as supply increases. Gulf oil supply is expected to recover fully by year's end, according to industry projections. The last time Ras Tanura faced a prolonged disruption was during the September 2019 attacks on Saudi oil facilities at Abqaiq and Khurais, which temporarily cut 5.7 million barrels per day — more than half of the kingdom's production at the time. The current restart, by contrast, reflects a diplomatic resolution rather than a security incident.

The additional supply enters a market already facing demand uncertainty from slowing economic growth in China and Europe. OPEC data shows the group holds spare capacity of roughly 4 million barrels per day, much of it concentrated in Saudi Arabia and the UAE. The Ras Tanura restart will test whether the market can absorb the extra barrels without a significant price adjustment, particularly as refineries in Asia — the primary destination for Saudi crude — enter seasonal maintenance periods.

For Asian buyers, the resumption of Saudi loadings provides relief after months of supply uncertainty. Saudi crude typically accounts for about 15 percent of Asia's refining feedstock, and the halt had forced some buyers to seek alternative supplies from the US and West Africa at higher freight costs. The normalization of Gulf supply could help narrow the Brent-Dubai spread, making medium-sour grades more competitive against lighter alternatives.

The restart also carries implications for OPEC's production strategy. Saudi Arabia had effectively reduced its output during the halt, helping to support prices during a period of geopolitical uncertainty. With Ras Tanura operational again, the kingdom may need to adjust its production allocations to avoid flooding the market, particularly if other OPEC members also ramp up output in the coming months. The next OPEC meeting, scheduled for later this year, will provide the first formal forum for members to reassess production targets in light of the restored Gulf supply capacity.

The timing of the restart is notable, coming just ahead of the peak summer driving season in the Northern Hemisphere, when gasoline demand typically rises. If Gulf supply normalizes as expected, the combination of increased crude availability and seasonal demand could lead to a rebuilding of global oil inventories, which have drawn down during the months of supply disruption.

This article is for informational purposes only and does not constitute investment advice.