(Reuters) – Sources in the sector said that several European and northern oil refineries will receive less quantities of crude from Saudi Arabia in April, indicating a lack of demand for additional supplies offered by the Kingdom as part of its efforts to boost its market share.
Saudi Arabia, the world’s largest oil exporter, plans to boost its exports sharply after the collapse of a three-year agreement between the Organization of Petroleum Exporting Countries (OPEC) and other producers led by Russia to cut supplies earlier in the month.
But with demand collapsing as well due to government restrictions aimed at containing the outbreak of the Corona virus, oil companies are reducing the operating rate of refineries and are not in a rush to take additional Saudi barrels, the sources said.
“There is definitely a reduction in the operating rates of the refineries … so it is difficult to allocate a lot,” said a commercial source, speaking on condition of anonymity, who discussed the matter with oil companies.
And two sources in the sector said that Shell is among the international oil companies that will take less Saudi crude. A source said that companies are seeking to reduce their shares of Saudi crude by up to 25 percent. Shell declined to comment.
Doaa Mohamed’s preparation for the Arab Bulletin – Editing Moataz Mohamed