Middle East oil producers were preparing for a potential resumption of crude exports through the Strait of Hormuz after a ceasefire between the United States and Iran raised cautious optimism about reopening the critical global shipping route.
In recent developments, producers across the region had asked Asian refiners to submit crude oil loading programmes for April and May, signalling early preparations for a restart of shipments through the strategic waterway.
Sources familiar with the matter said the requests were part of contingency planning tied to expectations that shipping through the Strait of Hormuz could resume following the ceasefire announcement on April 8.
The truce between the United States and Iran had lifted hopes that the strait through which about 20 per cent of global oil and liquefied natural gas supplies previously passed before the conflict could reopen. However, there had been no indication that Tehran had lifted its near-total blockade of the route, a development that had significantly driven up global energy prices.
Top global exporter Saudi Aramco had moved to position itself for a restart by asking clients to submit nominations for cargoes scheduled to load in May from its Yanbu and Ras Tanura ports, according to two sources. The planned shipments from Ras Tanura, located in eastern Saudi Arabia, remained dependent on vessels being able to safely transit the Strait of Hormuz.
Earlier, in March, Aramco had restricted crude lifting for April to the Yanbu port on the Red Sea, bypassing Hormuz entirely. The company had relied on its East-West Pipeline to transport crude from its eastern fields to the Red Sea export terminal as a workaround to the disruption.
Meanwhile, Kuwait Petroleum Corporation had also taken steps to prepare for a possible resumption of normal operations. The state-owned oil firm had issued loading dates for Kuwait Export Crude sold on a free-on-board basis for April, with cargo nominations already underway, according to sources. However, the ability to execute these shipments remained contingent on whether buyers could physically lift the cargoes under prevailing conditions.
In March, Kuwait had declared force majeure on delivered crude supplies after tankers were unable to enter the Gulf to load oil, highlighting the severity of the disruption caused by the blockade.
Elsewhere, Iraq’s state oil marketer SOMO had asked customers to submit loading schedules following reports that Iran might have granted Iraq exemptions from transit restrictions through the Strait of Hormuz. This development added to cautious optimism among market participants, although uncertainty remained high.
Asian refiners and trading firms had already begun positioning for a potential restart, seeking tankers to load crude from within the Gulf in the days following the ceasefire announcement. Commodities trader Glencore and Taiwan’s state refiner CPC had each chartered tankers to transport Middle Eastern crude to Asia, while refiners in India and South Korea were actively searching for vessels to lift Iraqi crude in April.
Erizia Rubyjeana
