Aramco Offers Full Crude Volumes to European Refiners Amid Disruptions

Saudi Aramco has informed at least three European oil refiners that they will receive their full contractual crude volumes in September, alleviating concerns about supply disruptions in the region. The allocations were made despite ongoing hostilities in the Red Sea and the Strait of Hormuz remaining heavily disrupted.

The affected buyers will lift from Egypt's Mediterranean port of Sidi Kerir or the Saudi Red Sea port of Yanbu, with some also offered a ship-to-ship transfer from Malta. This move is seen as a creative solution by Aramco to market and move its barrels due to the increased risks associated with its main export routes.

Some traders had expressed concern that Asia might snap up more barrels from Sidi Kerir, leaving less for Europeans. However, Aramco's decision to grant full allocations to these buyers offers some relief at a critical time for European refiners.