Saudi Arabia's oil supply fully back online: energy minister

JEDDAH: Saudi Arabia’s oil supply is fully back online after weekend attacks halved output and the kingdom will achieve 11 million barrels per day (bpd) capacity by the end of September and 12 million bpd by the end of November, the energy minister said on Tuesday.

Minister Prince Abdulaziz bin Salman also told a press conference that oil production in October would be 9.89 million bpd and that the world’s top oil exporter would keep full oil supplies to customers this month.

He said Saudi Arabia would keep its role as the secure supplier of global oil markets, adding that the kingdom needed to take strict measures to prevent further attacks.

Earlier today, Saudi Aramco has informed at least six refiners in Asia that it will supply full allocated volumes of crude oil in October following attacks on Saudi oil facilities on the weekend, although at least one has been told of a grade switch partially.

Saudi Arabia has said it would be able to meet oil customers’ demand from its ample storage. But this is the first indication that its supply to top consumers in Asia – who consume more than 70% of total Saudi crude exports – will largely remain stable.

Three state-owned refineries in India – Indian Oil Corp, Bharat Petroleum Corp Ltd and Mangalore Refinery and Petrochemicals Ltd will receive full allocated volumes of crude oil from Saudi in October, three industry sources told Reuters.

But Aramco has informed India’s top refiner, IOC, that it would give some volumes of Arab heavy instead of Arab mix oil, said one of the sources, who declined to be identified as he is not authorised to speak to media.

This indicates that the Kingdom is offering heavy crude instead of light crude as Arab Mix is a combination of Arab light and heavy.