Saudi Aramco has resumed crude oil shipments from its Ras Tanura terminal, ending a nearly four-month halt, according to shipping data released Friday. The restart is one of the clearest signs yet that oil flows through the Gulf are returning to normal after months of disruption tied to regional conflict.
Shipping data showed at least two Very Large Crude Carriers operated by Saudi firm Bahri loading crude at the terminal, with a third vessel waiting offshore. Each VLCC can carry around two million barrels. Aramco hasn’t commented on the restart.
A Resumption Amid Lingering Tension
The restart comes just a day after a vessel operated by Taiwan’s Evergreen Marine was struck by an unidentified object in the Strait of Hormuz. The British maritime security agency UKMTO temporarily paused escort operations through the strait following the incident.
U.S. officials suggested Iran may have been involved. Iran has denied responsibility and says vessels following approved routes are guaranteed safe passage. Despite the incident, oil flows across the Gulf have kept recovering.
Why Ras Tanura Matters
Ras Tanura sits on Saudi Arabia’s eastern coast and ranks among the largest oil export hubs in the world. At peak capacity, it handles more than five million barrels a day, and it’s also home to Saudi Arabia’s largest domestic refinery, which processes around 550,000 barrels per day.
The terminal was shut down as a precaution during the height of regional instability, forcing Aramco to reroute exports through Yanbu on the Red Sea. The last shipment out of Ras Tanura before the pause was a cargo bound for China on March 8, according to LSEG data. Saudi crude exports overall fell from over seven million barrels per day in February to around four million barrels per day in the months that followed.
Gulf Exports Picking Back Up
Before the disruption, roughly a fifth of the world’s oil and LNG shipments passed through the Strait of Hormuz. Tanker traffic has been climbing in recent weeks as diplomatic arrangements and reduced hostilities let producers ramp back up.
Energy consultancy Rystad Energy estimates about two million barrels per day of previously halted Gulf output has come back online in just three weeks. Aditya Saraswat, Rystad’s MENA research director, said the recovery is “spread across the region,” meaning multiple producers are bouncing back at once, not just Saudi Arabia.
Iraq’s SOMO, Kuwait Petroleum Corporation and QatarEnergy have all issued new crude tenders as they compete for market share. The UAE has resumed steady exports through Hormuz as well. Iran has increased its own exports following a temporary easing of sanctions, and shipping data showed two empty VLCCs entering the Gulf to load Iranian crude.
Prices React
Crude prices dropped more than a dollar per barrel Friday after rising earlier in the week on news of the tanker incident. Analysts expect Saudi Aramco could lower its official selling prices for August shipments as competition among Gulf exporters builds, and traders are bracing for more downward pressure on prices in the near term.
Shipping Continues, Carefully
Tankers carrying UAE crude kept moving through Hormuz on Friday, including two loaded VLCCs exiting the Gulf and a third headed to Zirku port. Shipping operators are still watching the strait closely, since even small incidents there tend to ripple through global markets given how much oil passes through it.
Rystad estimates shut-in production across the Gulf has dropped to about 9.6 million barrels per day, down from 11.7 million barrels per day three weeks ago. If that pace holds, analysts expect Gulf supply to fully recover by the end of the year, assuming there’s no major new flare-up.
The situation remains fragile. But with several Gulf producers ramping up output at the same time, the oil market looks to be edging back toward balance after months of uncertainty.
George Mensah is a journalist covering global politics, international conflicts and economic developments for clicxpost. He specializes in breaking news analysis and geopolitical reporting.