Saudi Arabia Pivots to Spot Oil Sales After Key Pipeline Goes Offline
Investigates Suspected Cyber Attacks on Texas-Bound Tankers Iran’s proposed anti-infiltration law is… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… So far this week, Saudi Arabia has sold as many as 20 million barrels of crude oil in the spot market to be picked up from just outside the Strait of Hormuz, after the Kingdom was forced to shut down the key onshore pipeline that helps it bypass the chokepoint, unnamed traders with knowledge of the matter toldBloombergon Wednesday.
Chinese refiners, including state-held giants and independent refiners, as well as crude processors in other East Asian countries, have been the main buyers of the Saudi spot crude offerings this week, according to Bloomberg’s sources who wished to remain anonymous.
The Saudis are selling the cargoes for pickup and loading for this month and next onto other vessels outside the Strait of Hormuz.
This means buyers will not be sending tankers into the Persian Gulf via Hormuz, but will load the cargoes in ship-to-ship (STS) transfers in the Gulf of Oman.
Late last week, Saudi Arabiashut downits East-West oil pipeline following drone attacks launched from the territory of Iraq close to the Iranian border on Thursday.
The 750-mile-long East-West pipeline became Saudi Arabia’s vital oil route to bypass the Strait of Hormuz after the Middle East conflict started and Hormuz was closed to shipping traffic.
Thanks to the East-West pipeline, the Kingdom has managed to re-route most of its crude loadings from its eastern ports in the Persian Gulf to the Red Sea port of Yanbu.
After the East-West pipeline outage, Saudi oil giant Aramco has reportedlycanceled or delayedsome September deliveries to European refiners.
The STS transfers of spot crude cargoeshave been perfectedin recent months by the United Arab Emirates (UAE), whose national oil company ADNOC has offered prompt supply in multiple tenders both within the Persian Gulf and the Fujairah-Sohar range outside the Strait of Hormuz.
Japanese Refiners Rush for Oman Crude After Saudi Pipeline Shutdown Japanese Refiners Rush for Oman Crude After Saudi Pipeline Shutdown What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Bessent Says Strait of Hormuz Obsolete Within Two Years White House Weighs Defense Production Act as U.S.
Refineries Maxed Out Saudi Arabia Discovers 110 Million Tonnes of Uranium-Bearing Ore Satellite Images Show Seven Tankers Loading Iraqi Crude at Once Qatar and Kuwait Restore 70% of Pre-War Oil Exports Through Hormuz The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or off.
| 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% |
Comments
Post a Comment