September 15, 2019 / 7:15 PM / a month ago

Saudi to emerge a major oil products buyer after attacks - Energy Aspects

LONDON, Sept 15 (Reuters) -

* Saudi Arabia is set to become a significant buyer of refined products after attacks on Saturday forced it to shut down more than half of its crude and some of its gas output, consultancy Energy Aspects said in a note.

* “The loss of gas has impacted refinery operations, possibly curtailing runs by 1 million barrels per day, releasing medium and heavy crudes for export,” it said.

* State oil firm Saudi Aramco will likely buy significant quantities of gasoline, diesel and possibly fuel oil while cutting liquefied petroleum gas exports.

* About 5.7 million barrels per day of Saudi crude production was shut down on Saturday after drone strikes claimed by the Iran-aligned Houthi group in Yemen.

* Energy Aspects said along with oil, the attacks disrupted 18% of its natural gas and 50% of its ethane and natural gas liquids output.

* The consultancy said nearly half of Saudi Arabia’s lost crude production is likely to resume by Monday but a full resumption will likely take weeks.

* The quality of two Saudi crude grades, Arab Light and Arab Extra Light, may also have been affected with excess hydrogen sulphide, reducing refinery appetite, it added.

* Exports will be maintained by running down 50-60 million barrels of domestic crude stocks, mostly in Ras Tanura.

* Energy Aspects has some of the strongest intelligence on the Saudi oil sector. (Reporting By Dmitry Zhdannikov, Writing by Julia Payne, Editing by William Maclean)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below