Saudi Aramco Boosts Gulf of Oman STS Transfers, Straining VLCC Availability and Raising Costs

Overview In September 2026, Saudi Aramco redirected a large share of its crude exports from the Red Sea to the Strait of Hormuz . The shift has forced a surge in Ship-to-ship (STS) transfers in the Gulf of Oman, stretching the pool of available VLCC vessels. Key Developments Saudi crude flowing via Hormuz is set to rise to 3.6 million barrels per day (bpd) in September, up from about 0.9 million bpd in August ( Kpler data). The increase requires an extra 36‑40 VLCCs for shuttle runs; each VLCC carries roughly 2 million barrels . Daily time charter rate for a VLCC on the West‑Asia‑to‑China route hit a record $1.27 million on 21 September 2026 ( LSEG ). Other Gulf producers such as Iraq and the UAE are also using STS services, creating queues for tugboats, labour and anchorage. Chinese buyers are seeking alternative STS locations off India, Malaysia or direct deliveries to refineries. Important Facts Since the attack on the East‑West Pipeline on 13 September 2026, more than 60 million barrels have been moved by STS off Sohar, Oman. Analysts estimate that the current STS queue has lengthened the average operation time from five‑seven days to about ten days. Typical STS volume from west‑of‑Hormuz ports remains around 6 million bpd , equivalent to three VLCC pairs starting daily operations. UPSC Relevance Understanding the strategic importance of the Strait of Hormuz helps answer questions on energy security and geopolitics (GS3). The shift from Red Sea to Hormuz illustrates how infrastructure attacks (e.g., on the East‑West Pipeline ) can reshape trade routes, a topic in international relations (GS1, GS3). The rise in time charter rates and VLCC demand provides a case study of market dynamics and price transmission in global commodities (GS3). Way Forward Policymakers may need to: Enhance regional port capacity and ancillary services to reduce STS bottlenecks. Diversify export corridors, including developing safe over‑land pipelines or alternative maritime routes. Monitor charter‑rate spikes as early indicators of supply‑chain stress that could affect global oil prices.