Saudi Aramco handles Sept Asia crude allocations on ad hoc basis

Saudi Aramco is allocating its September crude to several Asian term buyers case by case, according to three sources cited by Business Recorder. The move comes as conflict in the Middle East has curbed shipments from the kingdom. Buyers are unsure whether they can book vessels and lift their contracted volumes.

Four Chinese buyers had yet to receive their September allocations, sources said this week. Two of those buyers and one more Asian purchaser said lifting volumes are being discussed separately with Aramco. An Indian refiner reported receiving its full allocation, yet the quantity remains uncertain because it is unclear whether vessels can be secured. Aramco had not commented when approached.

Earlier this month, Aramco lowered its September pricing for Arab Light sold to Asia to a six-year low, aimed at attracting buyers. Refiners usually handle their own shipping under free-on-board terms, and few shipowners are willing to sail through the Strait of Hormuz or Red Sea. Shipments to Asia fell below 3 million barrels per day in July, compared with 4.9 million barrels per day shipped last year, according to Kpler data. Dark voyages, however, make visibility into Saudi exports harder.