Saudi Aramco has informally told several Asian refiners they will soon resume oil loadings at the Red Sea port of Yanbu, weeks after a drone attack shut the pipeline feeding it. No timelines have been set, and European buyers remain shut out of October allocations tied to the closure.
Saudi Aramco has informally told several Asian refiners they will soon be able to resume oil loadings at the Red Sea port of Yanbu, according to traders familiar with the matter. At least three fuel processors received the assurances directly from Aramco executives rather than through official notices, and no timelines were given, the traders said.
Pipeline attack halted loadings
Loadings from Yanbu have been all but halted since the East-West pipeline, which carried about 4 million barrels of oil a day to the port, was closed after being struck by drones launched from Iraq on Sept. 10. Saudi Arabia sought to restore about half the pipeline's capacity within days, a person familiar with the matter told Bloomberg late last week, though Aramco has given no recent updates. Aramco declined to comment.
Asian refiners divert through Hormuz
Some of the Asian refiners contacted by Aramco have already missed their scheduled loading dates at Yanbu, and their vessels are now waiting near the port or heading there, the traders said. Since the attack, Saudi Arabia has increased exports to Asia from Ras Tanura in the Persian Gulf, which can be picked up via ship-to-ship transfers in the Gulf of Oman after crossing the contested Strait of Hormuz.
European buyers shut out in October
European customers, not Asian ones, have been most affected by the halt at Yanbu. Aramco told at least two European refiners last week they will receive no oil under long-term agreements in October because of the pipeline attack, a decision that applies to all buyers across the continent.
Source: Rigzone.com
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