Saudi Oil Floods Asia Amid Pipeline Woes
Saudi Arabia has sold almost 100 million barrels of oil to Asian buyers since mid-last week, helping to alleviate a looming supply crunch in the region.
The crude for delivery in October and November will be sent via the Strait of Hormuz, according to traders familiar with the matter. Chinese state-run and independent refiners, as well as processors in India, Japan, and South Korea are among the buyers.
This unusual flurry of sales is equivalent to about one day's worth of total global demand, representing a more-than-doubling of recent Saudi-to-Asia flows through Hormuz. The move comes as the kingdom's East-West pipeline, which bypasses Hormuz by carrying oil to the Red Sea, remains partially operational after being attacked on September 10.
Saudi Aramco is offering to manage logistics and transport the crude all the way to Asian customers, the traders said. This shift in approach has been necessitated by the problems with the pipeline, which have forced the Saudis to export more oil through Hormuz.