Refining giant Saudi Aramco has resumed oil loading operations at its Ras Tanura terminal in the Gulf after a near four-month suspension.
Saudi Aramco has resumed oil loadings after a four-month suspension, with shipments through the Strait of Hormuz rising to their highest level since the conflict began. However, overall traffic in the region remains significantly below normal daily averages.
Crude oil prices slipped about 2% on Friday and were on track for steep weekly losses, as easing supply fears followed reports of additional tankers exiting the Strait of Hormuz, despite an attack on a cargo vessel near Oman on Thursday.
Brent crude oil fell $1.47, or 1.95%, to $73.79 a barrel, while West Texas Intermediate crude dropped $1.44, or 2%, to $70.48 a barrel.
Saudi Aramco resumed crude loading on Friday at its Ras Tanura terminal in the Gulf after a near four-month pause, according to shipping data from LSEG. The data showed two Very Large Crude Carriers (VLCCs) taking on cargo at the terminal, while another vessel remained nearby awaiting loading. Each VLCC can carry up to 2 million barrels of oil.
Market sentiment weakened as increased supply flows from the region weighed on prices. “There is a general sell-off as the market reacts to the increased flows exiting the Strait of Hormuz and China not yet picking up crude demand,” said June Goh, senior oil market analyst at Sparta Commodities.
Prices had surged more than 2% on Thursday after a cargo vessel was struck by an unknown projectile near Oman, prompting the UN shipping agency to suspend its voluntary evacuation scheme. Two US officials told Reuters that Iran fired on the ship as it passed through the Strait of Hormuz, while Iranian authorities said vessel safety outside designated routes cannot be guaranteed.
Both Brent crude oil and West Texas Intermediate crude are now set to post weekly losses of around 8%.
Data showed crude shipments through the Strait of Hormuz rose this week to their highest level since the US-Israel-Iran conflict began in February, after a ceasefire reopened the waterway. However, overall traffic remains well below the pre-conflict average of about 125 ships per day.
ING analysts noted that the recent increase largely reflects previously stranded vessels exiting the Persian Gulf, while inflows remain relatively weak. They cautioned that flows could ease again once the backlog clears.
Separately, earthquakes in Venezuela on Thursday added to supply concerns. Initial assessments suggested limited damage to oil infrastructure, as key production and refining facilities are located away from the hardest-hit areas. However, power disruptions have raised doubts about whether output can be maintained at pre-quake levels of around 1.2 million barrels per day.
