Asian refiners buy spot Nov Saudi oil
SINGAPORE: Several Asian refiners bought November Saudi crude in the spot market as Saudi Arabia pushed to move more oil out of the Strait of Hormuz, sources with knowledge of the matter said. Chinese state-owned and independent refiners bought at least 12 million barrels of Saudi crude on a delivered basis, three sources said. Another two sources said Saudi has sold oil for November-loading on a…
Several Asian refiners have recently purchased November Saudi crude in the spot market, according to sources familiar with the transactions. Chinese state-owned and independent refiners bought at least 12 million barrels of Saudi crude delivered to them, while refiners in India and Taiwan also received shipments of November-loaded oil.
The price of some of the delivered crude was around USD20 higher per barrel than the official November selling prices set by Saudi Arabia. The sales were facilitated through a tender issued by Saudi Aramco, as well as direct negotiations with private refiners. Saudi Arabia typically announces its official selling prices at the start of each month and invites term buyers to submit monthly volume proposals.
However, due to security concerns related to the Iran war, Saudi Arabia has begun transferring oil from the Strait of Hormuz to the spot market instead of loading shipments inside the strait. Two of the sources explained that this shift in strategy was prompted by buyers' reluctance to charter ships for loading crude within the strait. Saudi Aramco did not provide any comment on the matter.
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