By ERIC YEP
Saudi Arabia's state-run Saudi Aramco has secured diesel
imports for 2013, thus boosting Asian product premiums.
The country used to be a key exporter of oil products but is
increasingly importing more oil products due to strong domestic
Saudi Aramco Product Trading Co., the trading arm of Saudi
Aramco, has bought diesel under term contracts for 2013 from
multiple suppliers including BP, Shell, and Phillips 66,
Singapore-based traders say.
Aramco Trading bought 500-ppm sulfur diesel on term
contracts at a premium of around $3.90/bbl above Middle East
quotes for delivery at Jeddah port, $4.50/bbl premium for
delivery at Jizan port, and $2.90/bbl premium for delivery at
Ras Tanura port, all on CFR basis, the traders said.
Demand from the country is expected to support the Asian
distillates market in the short-term.
"The Middle East has become one of the fastest growing
regions in terms of oil demand," analysts at Barclays said in a
note last month.
"[W]e expect Saudi Arabian oil demand growth from both
transportation and power generation to remain strong in 2013
and 2014," it said.
Dow Jones Newswires