Saudi Aramco Alleviates European Supply Concerns with Full Oil Allocation

Saudi Aramco has notified at least three European oil refiners that they will receive their full contractual crude volumes in September, alleviating supply concerns in the region. This move comes as crude flows from the Persian Gulf and Red Sea are disrupted due to hostilities in the area.

The affected buyers will lift their allocations from Egypt's Mediterranean port of Sidi Kerir, or have been given the option to take supplies from the Saudi Red Sea port of Yanbu or via ship-to-ship transfer from Malta. This is a change from Aramco's normal logistics, which has been impacted by the disruptions.

The allocation decision was made with some urgency, as traders were concerned that Asia might snap up more barrels from Sidi Kerir, leaving less for European buyers. Aramco had previously notified Asian buyers of their allocations, but several of them are pushing back against a request to pick up cargoes at Yanbu due to security concerns.