Saudi Aramco has offered spot cargoes to European buyers in recent weeks to replace volumes lost after the East-West pipeline outage. The offers include October and November loading cargoes. Some October cargoes were sold below the company’s official selling price, according to Bloomberg, and the extra supply has begun to affect European oil prices.
Long-term deliveries cut back
Aramco had told European partners earlier in the month that it could not meet October long-term deliveries. Saudi crude exports to Europe typically run between 700 and 800 thousand barrels per day, largely under long-term contracts.
The company has since said contracted volumes for November are fully secured.
Output recovers in September
Saudi Arabia’s crude production in September exceeded 8 million barrels per day. That was up by about a third from the previous month.
Middle East oil exports have nearly returned to pre-war levels. Attacks on facilities and tankers near the Strait of Hormuz continue.
Source: Saudi Aramco
