Saudi Aramco to Supply Full Volumes to N Asia in January

Saudi Aramco has notified at least three buyers in North Asia that the firm will supply full contractual volumes of crude oil in January 2024, while buyers have asked for less supply amid high January OSPs to Asia, people with knowledge of the matter said, cited by Reuters.

• Saudi Arabia’s January OSPs to Asia are much more expensive than market expectations, therefore, some refiners in China have asked for less supply, the people said.
• Around 40mm barrels are nominated by Chinese refiners for January loadings, down from 46mn barrels a month earlier, trading sources said.
• Saudi Aramco cut its flagship Arab Light OSP for January to Asian customers by 0.50ct/bbl to 3.50$/bbl over the Oman/Dubai benchmark.
• Despite the high Saudi prices, refiners in other North Asian countries did not ask for a lower nomination in December, the people said.
• "I believe many have the thoughts to reduce the supply volumes. But it's not easy for us to do that. We need to maintain good relations with Saudi due to energy security concern," said one trader with a Japanese refiner.