Export PDF
Print
E-mail
Share this
Mister Wong
Digg
Del.icio.us
Technorati
Newsvine
Facebook
Wikio
CAPITALS: Saudi Aramco has concluded supply deals to purchase up to 7.14 million barrels of gas oil for delivery in 2010 from private trading firms and international oil companies, industry sources said on Monday.
The world''s top oil exporter, which typically steers away from longerـterm supply contracts as it strives for fuel selfـsufficiency, has already agreed to buy nearly 5 million barrels of gas oil with four firms.
Swiss based trading firm Vitol, oil major British Petroleum, Kuwait''s Independent Petroleum Group (IPG) and Japan''s Itochu Petroleum will each supply about 1.19 million barrels to Aramco, sources said.
Aramco also has the option of purchasing an additional 595,200 barrels from each respective company, under the individual deals.
These deals will run from March through December, traders said. The price on the deals was concluded at a premium of two US dollars to Middle East benchmark quotes on a 0.5 percent sulphur basis, cost and freight (CFR).
Last year Aramco concluded its term deals at a premium of around $2.70.
The Gulf Arab oil producer bought up to 10 million barrels via long term deals in 2009, but has likely cut back on the volume it secures via such supply contracts this year because there are more attractive deals available on the spot market.
"It isn''t just Aramco, term buyers have limited their volumes this year because they know that the spot market can be very attractive due to oversupply pressuring prices," a Middle East trader said.
The state oil firm was expected to purchase a combination of different sulphur content cargoes from the firms.
Oil demand in Saudi Arabia is expected to rise this year along with expectations that the kingdom''s economy will grow about 3.8 percent in 2010, up from 0.2 percent in 2009, a Reuters poll showed.
"Their demand is going to be quite healthy this year. They are still spending and pushing ahead with all their mega projects, so, of course, oil demand will be robust," a trader said.
Saudi demand for power generation fuels and transport has risen rapidly over the past several years as record crude exports sparked an economic boom.
Supply cuts to the kingdom''s overall production in line with the Organization of Petroleum Exporting Countries (OPEC) quotas has also tightened supply of Saudi gas, most of which is produced with oil, leaving less to supply power plants and industry.
source:Reuters
The world''s top oil exporter, which typically steers away from longerـterm supply contracts as it strives for fuel selfـsufficiency, has already agreed to buy nearly 5 million barrels of gas oil with four firms.
Swiss based trading firm Vitol, oil major British Petroleum, Kuwait''s Independent Petroleum Group (IPG) and Japan''s Itochu Petroleum will each supply about 1.19 million barrels to Aramco, sources said.
Aramco also has the option of purchasing an additional 595,200 barrels from each respective company, under the individual deals.
These deals will run from March through December, traders said. The price on the deals was concluded at a premium of two US dollars to Middle East benchmark quotes on a 0.5 percent sulphur basis, cost and freight (CFR).
Last year Aramco concluded its term deals at a premium of around $2.70.
The Gulf Arab oil producer bought up to 10 million barrels via long term deals in 2009, but has likely cut back on the volume it secures via such supply contracts this year because there are more attractive deals available on the spot market.
"It isn''t just Aramco, term buyers have limited their volumes this year because they know that the spot market can be very attractive due to oversupply pressuring prices," a Middle East trader said.
The state oil firm was expected to purchase a combination of different sulphur content cargoes from the firms.
Oil demand in Saudi Arabia is expected to rise this year along with expectations that the kingdom''s economy will grow about 3.8 percent in 2010, up from 0.2 percent in 2009, a Reuters poll showed.
"Their demand is going to be quite healthy this year. They are still spending and pushing ahead with all their mega projects, so, of course, oil demand will be robust," a trader said.
Saudi demand for power generation fuels and transport has risen rapidly over the past several years as record crude exports sparked an economic boom.
Supply cuts to the kingdom''s overall production in line with the Organization of Petroleum Exporting Countries (OPEC) quotas has also tightened supply of Saudi gas, most of which is produced with oil, leaving less to supply power plants and industry.
source:Reuters
Shares:
| Comments |
|
Powered by !JoomlaComment 3.26