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Saudi Export Shift Puts Gulf Of Oman STS Capacity Under Pressure, Kpler Says

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Saudi Arabia's export rerouting is straining Gulf of Oman ship-to-ship capacity, with 3.7 million barrels per day of activity averaging since the US-Iran war, Kpler said in a Monday note.

Gulf of Oman liquids ship-to-ship activity reached 7.2 million b/d in September to date, with crude and condensate making up 90%, or 6.9 million b/d, in August.

If Gulf of Oman capacity tightens further, West Coast India could absorb additional transfers once the monsoon-related weather disruptions ease, while Malaysia offers another option but requires longer shuttle voyages.

Longer routes would sharply increase vessel needs, with Kpler estimating 25 very large crude carriers for Gulf of Oman transfers, 32 for West Coast India and as many as 58 for Malaysia.

Kpler's base case sees 3 million b/d of Saudi crude rerouting ultimately requiring 36 to 40 additional VLCCs, increasing fleet exposure to Middle East Gulf risks and reducing shipping efficiency.

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Oil & Energy

Oil Prices Diverge as Saudi Pipeline Disruptions Offset by Export Reroute Plans, Diesel Hits Record Highs

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Oil & Energy

US Oil Update: Crude Settles Lower as Market Assesses Supply Risks, Mideast Tensions

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Oil & Energy

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