Asian Buyers Taking Less Saudi Oil on Demand Hit From Virus - Bloomberg:
At least four Asian oil refiners will take delivery of less Saudi Arabian crude than planned in March as the virus dents demand for fuel and creates a glut of alternative supplies, according to people with knowledge of the companies’ imports.
The companies, which include three Chinese buyers, asked for lower volumes as part of their long-term supply contracts with Saudi Aramco, according to the people, who asked not to be identified due to company policy.
They made the request for less oil as the coronavirus weighed on demand, prompting a reduction in refining across the region and leading to cheaper crude being available in the spot market, they said.
The reduced volumes are confirmation that the coronavirus is impacting crude sales from the world’s biggest oil exporter, which is leading an OPEC+ push for additional output cuts to try and balance the market. As China keeps entire cities locked down and airlines worldwide cancel flights, the U.S. Federal Reserve said the outbreak was a risk to the American and global economy.
At least four Asian oil refiners will take delivery of less Saudi Arabian crude than planned in March as the virus dents demand for fuel and creates a glut of alternative supplies, according to people with knowledge of the companies’ imports.
The companies, which include three Chinese buyers, asked for lower volumes as part of their long-term supply contracts with Saudi Aramco, according to the people, who asked not to be identified due to company policy.
They made the request for less oil as the coronavirus weighed on demand, prompting a reduction in refining across the region and leading to cheaper crude being available in the spot market, they said.
The reduced volumes are confirmation that the coronavirus is impacting crude sales from the world’s biggest oil exporter, which is leading an OPEC+ push for additional output cuts to try and balance the market. As China keeps entire cities locked down and airlines worldwide cancel flights, the U.S. Federal Reserve said the outbreak was a risk to the American and global economy.
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