--Middle East

State-owned Saudi Aramco continued to supply Arab Light (AL) ex the Yanbu port but the sales volumes for end-users in Asia may fall sharply. Transit risks for vessels sailing through Bab el-Mandeb Strait for Asia were growing, thus companies operating crude tankers like Saudi Aramco increasingly refrained from passing through the Strait. Houthis group in Yemen announced on Thursday that it attacked two oil tankers carrying Saudi Arabia crudes sailing through the sea, saying that they violated the naval blockade in the Red Sea. A company in South Asia pointed out that Saudi Arabian flagged "ENECELIA" with a capacity of 62,216 mt and the "LAYLA" with a capacity of 160,782mt were both attacked by Houthis.

Anticipating continued Houthi attacks on vessels, Saudi Aramco, which owned VLCCs and Aframax vessels, began to refrain from transiting the Bab el-Mandeb Strait and started to divert its vessels. In fact, the Saudi-flagged Aframax vessel, the 'RODOS' (63,468 mt), had been sailing towards Mangalore Refinery and Petrochemicals Ltd (MRPL)'s Mangalore refinery (199,000 b/d) in India after loading Arab Light (AL) at Yanbu port on July 20, but changed course and was now heading north through the Red Sea towards the Suez Canal.

-- Africa/Europe/Russia/America

In trade for US crude for September arrival, some cargoes were sold to Korea. GS Caltex on July 22 purchased two Aframax tanker cargoes (a total of 1.4mil barrels) of WTI Midland for early September arrival. Amid a decline in Middle Eastern crude supplies due to the worsening geopolitical situation, "GS Caltex bought WTI Midland because it needed to urgently secure prompt-arrival cargoes.

--Asia Pacific

In trade for September-loading Vietnamese grades, state-owned PV Oil issued a sell tender for Bach Ho Light and closed the tender on Thursday. The tender was valid until July 31. The tender offered one 300,000-barrel cargo for late-September loading. With concerns over Middle Eastern crude supplies resurfacing, "it is somewhat unexpected that Bach Ho Light, which can be refined in Vietnam, has been offered for sale," an energy company in Northeast Asia said. Bach Ho Light is normally supplied under long-term contracts between PV Oil and end-users. However, PV Oil has refrained from term sales for July-December 2026 loading in order to prioritize domestic supply. "PV Oil is expected to continue assessing domestic supply and demand conditions and sell any surplus volumes not required in Vietnam on a spot basis," the energy company said.