Saudi Arabia Cuts Europe Off From October Crude as Gulf Exports Surge
Saudi Arabia Cuts Europe Off From October Crude as Gulf Exports Surge Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector.
Her… Saudi Aramco has told European term customers they will receive no Saudi crude in October, even as the kingdom pushes roughly 60 million barrels back through the Persian Gulf after damage to its East-West pipeline.
At least two European refiners were told their October allocations are zero, Bloomberg reported Friday.
People familiar with the decision said it applies to all European term buyers.
While Saudi Aramco seems to have found a way to move some of the crude that was stranded by the East-West pipeline, Europe is on the wrong side of the workaround.
The East-West pipeline had been moving 4 million to 5 million barrels per day across Saudi Arabia to Yanbu, bypassing the Strait of Hormuz.
Crude from Yanbu could move through Egypt’s SUMED system to Sidi Kerir on the Mediterranean, giving European refiners access to Saudi barrels without entering the Gulf.
The pipeline attack stopped that flow, and Europe was left scrambling.
Aramco has since sold about 60 million barrels from its Persian Gulf export terminal at Ras Tanura for September and October loading.
Those barrels will move through Hormuz and undergo ship-to-ship transfers near Sohar, Oman.
The program puts roughly 1 million to 1.5 million bpd of Saudi Gulf exports back into the market—with buyers in China, South Korea, India and Japan, and decidedly not Europe.
Brent was trading around$104.30Friday and WTI near $102, well below Brent’s move above $108 earlier this week.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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