Saudi Aramco has told European oil refiners it will provide all the crude they requested for November, after the kingdom's key cross-country pipeline resumed operation following attacks. The move offers relief to customers who had been forced to find alternative supplies.
At least three European refiners said they will receive full crude allocations from Saudi Arabia's state oil company next month, according to people with knowledge of the matter who asked not to be identified because the information is not public. Saudi Aramco did not immediately respond to a request for comment.
The restoration should help ease a tight market in Europe, which was disrupted when Aramco told refiners they would receive no crude in October after an attack on the East-West pipeline. That decision triggered a rush to secure replacement cargoes. Orlen SA, the biggest buyer of Saudi crude, issued more than ten tenders to buy alternative barrels.
Saudi Arabia typically exports an average of 700,000 to 800,000 barrels a day of crude to Europe, according to ship tracking data compiled by Bloomberg.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing