- Reuters released a report from Singapore Tuesday stating that Saudi Arabia's oil delivery to China was delayed.
- After the attack on the Abqaiq refinery facilities, Saudi Arabia's crude oil exports were said to have halved.
- Japan and the United States have hinted at tapping their strategic petroleum reserves.
Saturday’s attack on Saudi oil facilities has disrupted Saudi refinery production. Aramco is trying to make orders for its oil deliveries. Saudi Arabia is said to have been forced to buy low-sulfur diesel. The extent of the damage to the Saudi oil facilities is still unclear. Some experts believe it could take several months to rebuild and repair the damage caused by the attack on the refinery. The question in the global energy markets is currently about Saudi Arabia’s ability to carry out oil orders and refinery products.
Reuters released a report from Singapore Tuesday stating that Saudi Arabia’s oil delivery to China was delayed. Per a senior official of the National Petroleum Corporation of China, Saudi Arabia and Aramco officials have informed China that its oil shipments will be delivered in October with a 4-day delay. The official said that, according to Saudi Arabia, the delay in delivering a 4-day supply of light petroleum to China had nothing to do with the amount of oil ordered. News reports say that Aramco officials have made every effort to execute oil and refinery purchase orders.
After the attack on the Abqaiq refinery facilities, Saudi Arabia’s crude oil exports were said to have halved. The decline in Saudi Arabia’s oil exports is estimated at about 5 million barrels per day. The capacity of Abqaiq Refinery, which is the largest refinery in the world, is declared at seven million barrels per day.
Saudis Buying Low-Sulfur Diesel
News agencies have been reporting for the past two days about Saudi efforts to buy light oil, especially low-sulfur diesel. Saudi Arabia has not only purchased these petroleum products to meet its domestic needs but is also seeking to retain its share in supplying global energy markets by re-exporting these products.
Reuters reports that Saudi Arabia has become one of the main buyers of refinery products. Saudi Arabia’s daily production of refined products has dropped by one million barrels per day, the agency said.
Countries Release Strategic Oil Reserves
Japan is one of the largest buyers of Saudi oil. Japanese officials have said that Aramco has so far not informed them of the possibility of a drop in the supply of oil purchased by Japan or of delays in deliveries. Japan, meanwhile, has insisted that its strategic oil reserves are sufficient to meet domestic needs for seven days. Japanese officials have also said that the country is in close contact with the International Energy Agency and will use other facilities to meet its oil needs when necessary.
US Secretary of Energy Rick Perry has also said that it can release its oil reserves if needed to stabilize global energy markets.“I think we’re yet a little premature in making in comments on . . . whether or not the SPR’s going to be needed until we get a real handle on the length of time that this facility is going to be down,” Perry said
He emphasized that there is no need to do so under the current circumstances and that there is no disruption to the world’s energy supply right now. The US Secretary of Energy has also said that the country will continue its policy of waiting and monitoring global markets and will take action if necessary.