Saudi Aramco's trading arm seeks oil products after attacks -traders

Saudi Aramco's trading arm is seeking oil products for prompt delivery following Saturday's attacks on Saudi oil facilities, three trade sources said on Monday. Saudi Arabia is set to become a significant buyer of refined products after the attacks forced it to shut down more than half of its crude oil output and some of its gas, consultancy Energy Aspects had said in a note on Sunday.

The attacks have possibly curtailed as much as 1 million barrels per day (bpd) of Aramco's refining capacity, Energy Aspects also said, although this could not be confirmed and it was not clear to which Saudi Aramco refineries the consultancy was referring. Aramco Trading Company (ATC), the trading arm of Saudi Aramco, is making enquiries to buy diesel for prompt delivery, two of the trade sources said.

Saudi Arabia is typically a net exporter of diesel. "They are looking (for oil products) since they are trimming runs at some of the refineries," one of the sources said, declining to be named as he was not authorised to speak with media.

He said the total volumes sought by Saudi Arabia were not immediately clear, but that the prompt derivatives market was trading higher on Monday. ATC is seeking 10 parts-per-million (ppm) sulphur diesel through private discussions, asking for "anything prompt", a second trader said.

Brent crude futures, the international benchmark, rose by as much as 19.5% to $71.95 per barrel during early Asian trading hours. A third trading source said that Aramco Trading may have bought two ultra low sulphur diesel cargoes, although this could not be confirmed immediately and details were not available.

An ATC official declined to comment on the matter.

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