Saudi Aramco has offered additional spot oil cargoes to European buyers for October and November loading, according to a person familiar with the matter. The firm is compensating for supplies lost when its East-West pipeline was attacked, disrupting exports from the Red Sea port of Yanbu. October shipments were offered at a discount to Aramco’s official selling price, with loading from Sidi Kerir or Yanbu.
The pipeline has since restarted, allowing Aramco to boost exports and ease a tight European market. The company also confirmed full term contract allocations for November. Increased Saudi supply has helped lower prices for some oil grades in Europe this week.
Saudi Arabia typically exports 700,000 to 800,000 barrels per day to Europe, mostly under term contracts. Uncertainty over shipments has driven refiners toward spot purchases. Middle East oil exports have risen to near prewar levels despite ongoing attacks.
Saudi Arabia boosted production by a third in September to over 8 million barrels a day, recovering from a three-decade low. The UAE reached record output, and Iraqi exports are approaching pre-conflict levels, according to the International Energy Agency.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing