Saudi Aramco Gives Full September Oil Allocations to 3 European Refiners

Saudi Aramco is set to provide its full contractual oil allocations to three European refiners in September, according to Bloomberg. The deliveries will originate from Egypt's Mediterranean port of Sidi Kerir, Saudi Arabia's Red Sea port of Yanbu, or through ship-to-ship transfers off Malta. This announcement comes a week later than usual from Aramco to its European customers.

The move aims to provide supply certainty to European refiners amid ongoing disruptions to Saudi Arabia's primary maritime export routes. Iran's war has caused significant disruption in the Strait of Hormuz, while Houthi attacks have made the Red Sea an increasingly challenging route for commercial shipping. In a bid to alleviate these issues, Aramco has begun loading crude from within the Persian Gulf again, resuming operations at Ras Tanura and Juaymah after a three-week hiatus.

The company has also increased its shipments through Egypt's Sidi Kerir port as an alternative to the Houthi-threatened Bab el-Mandeb Strait. However, Aramco is facing difficulties in allocating September barrels to some Asian customers due to concerns over the Houthi threat at the Red Sea and higher costs and time associated with shipments from Yanbu.