State owned Kuwait Petroleum Corp. is directly offering its main export grade to refiners in China and South Korea, the first such sale since the Iran war began, traders familiar with the matter told Bloomberg. At least 4 million barrels are involved, carried on two very large crude carriers that have already cleared the Strait of Hormuz and can be delivered to Asian ports promptly.
The deal adds to evidence that Hormuz flows are gradually reopening, a trend that has tracked with stepped up US coordination of transits through the chokepoint. The United Arab Emirates has also been selling millions of barrels from inside the Persian Gulf to Asian refiners, and trading houses including Vitol Group and Mercuria Energy Group are helping shuttle barrels out alongside state producers like Abu Dhabi National Oil Co.
Vessel tracking points to recent activity around Kuwaiti ports. The supertankers Al Riqqa and Dar Salwa were last observed at Kuwait's Mina Al Ahmadi terminal in late May and early June respectively before their transponders went dark, according to data compiled by Bloomberg. Earlier in May, the supertanker Universal Winner carried Kuwaiti crude to South Korea via what appeared to be an Iranian approved route, and the Japan linked Eneos Endeavor also crossed the strait with a cargo of Kuwaiti and Emirati grades.
The effective closure of Hormuz triggered what traders have described as the worst oil supply disruption in history, all but cutting Asian refiners off from the higher sulfur Gulf barrels their plants were designed to run. Overall flows remain far below pre war levels, and Tehran's threats against shipping through the strait continue to hang over every loading.
For owners and charterers the message is that Hormuz traffic is creeping back, though persistent transponder gaps mean published transit counts likely understate real volumes. For Asian refiners, the return of Kuwaiti barrels alongside continued UAE sales offers some feedstock relief, even as route security and pricing remain unsettled.