• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days Energy Armageddon
  • 3 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 4 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Goldman Betting on Cryptocurrencies
  • 8 days Сryptocurrency predictions
  • 13 days Putin and Xi Bet on the Global South

Saudi Arabia Asks Iraq For Oil

Saudi Arabia has approached Baghdad with a request to buy crude oil from OPEC’s number-two to compensate for its production outage caused by the Saturday attacks, sources who declined to be named told S&P Global Platts.

According to one of the sources, Aramco had asked Iraq’s State Oil Marketing Organization, or SOMO, for some 10 million barrels of Basra Light, to load in October and November.

The drone and cruise missile attacks on Saudi oil infrastructure removed an estimated 5.7 million bpd from its output. Although work is underway to return to normal operation at the Khurais field and the Abqaiq processing facility, it will be a while before this happens.

Saudi Arabia announced that the outage will not affect delivery volumes for next month, but it did have to resort to stockpiled crude to fill in the orders, and said there may be delays in some Asian shipments.

Saudi Arabia’s crude oil in storage was about 180 million barrels in July, which would have been enough to cover exports at the rate of 6.88 million bpd for a period of almost a month.

Now, the S&P Global Platts sources say Riyadh is also planning to use some of the oil it had allocated for domestic consumption to fulfill its export obligations. Iraq, in the meantime, has yet to respond to the request as it has its own export orders to fill.

Yesterday, Energy Minister Abdulaziz bin Salman told media that more than half of the lost production had been restored. By the end of September, bin Salman said, Saudi Arabia would have 11 million bpd in production capacity and by the end of November, it would be 12 million bpd.

Right now, the Abqaiq plant is processing around 2 million bpd of crude, and repairs at the facility should be completed by the end of the month, Aramco’s chief executive Amin Nasser said.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Suqi Madiqi on September 23 2019 said:
    With Canadian oil mid caps off 80 to 90 percent in the last time odd years, oil going to 100 plus, who needs a real job?
  • Mamdouh Salameh on September 19 2019 said:
    If the request is real, it will be a logical move by Saudi Arabia to seek the purchase of 10 million barrels (mb) of Basra light crude oil to replace the loss of 1.2 million barrels a day (mbd) of Saudi light crude oil produced from the damaged Khurais oilfield.

    While Saudi Arabia can still meet its obligations to customers by tapping its stored crude oil estimated at 180 mb, an outage at Abqaig for a month could deplete Saudi stored oil by an estimated 171 mb or 95% and deprive the world’s largest exporter of oil of any spare production capacity making it unable to meet global oil demand in case of an emergency. That could push oil prices far beyond $80 a barrel.

    Moreover, there are doubts about claims by the Saudi oil minister, Prince Abdulaziz bin Salman about the duration needed to repair the damage to Aramco’s oil infrastructure and Saudi Arabia having a production capacity of 11 mbd by the end of September rising to 12 mbd by the end of September.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News