Saudi Arabia is in negotiations with customers and plans to provide long-term contract customers with oil loading services in the waters off the Strait of Hormuz next year. This will formally establish a delivery method used by Saudi Arabia during the Iranian war. According to people familiar with the matter, related discussions are still ongoing and must be completed before the end of the year. If approved, it would mark a major change in the way Saudi Arabia delivers crude oil to customers, as long-term contract supplies account for the majority of Saudi crude oil sales. The war, which has now been almost eight months, has thrown traditional oil transportation routes into chaos, and the Strait of Hormuz route has been severely damaged. Major oil exporters in the Gulf region were forced to make adjustments to meet customer needs and use shuttle transfers to transport oil out of the strait, leaving the seller to bear the risk of navigation and transfer the goods to ships other than this waterway. As all parties scramble to attract buyers, this has become a key model for maintaining market supply. People familiar with the matter said that Saudi Aramco is still discussing other changes, including choosing different pricing standards and even delivering goods directly to Asian customers. Since the talks were held privately, people familiar with the matter requested anonymity. They said that no final decision has been made yet, and details such as pricing, freight and applicable volume are still being discussed.

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