Some Asian refiners have refused ARAMCO’s request to pick up September-loading
crude at Yanbu after failing to find vessels willing to transit the risky Red
Sea route, traders said. At least two refiners have asked ARAMCO to deliver
their purchased cargoes to Sidi Kerir near Port Said on the Mediterranean
instead; the cargoes were due for September under long-term contracts. At least
one refiner may forgo its September allocation because rerouting from Sidi Kerir
around Africa to Asia would raise transport costs. Traders said some Saudi
barrels were already diverted to Sidi Kerir before ARAMCO published its
September sales plan. As part of next month’s allocations, ARAMCO has asked some
Japanese and Korean refiners to take deliveries at the Egyptian port, while most
Indian refineries remain assigned to pick up at Yanbu.
