International agency: Saudi oil supplies have experienced unprecedented disruption

Exclusive Follow-ups – Al-Khabar Al-Yemeni:

An international agency confirmed today that military operations in the Strait of Hormuz and the Red Sea have caused a disruption in oil supplies from the world’s largest crude exporter, casting a shadow of uncertainty over buyers’ ability to secure their shipments, and pushing Aramco to change its pricing and distribution strategy.

Informed sources told Reuters that Saudi oil supplies have experienced unprecedented disruption, leaving buyers in a state of confusion about their ability to secure ships and ship contracted quantities.

According to the sources, Aramco has resorted to handling its customers’ requests related to fixed-term contracts for September on a case-by-case basis.

The sources reported that at least four buyers have not yet received their shares, with discussions on remaining quantities continuing individually, an indication that the oil giant is facing extreme difficulties in fulfilling its contractual obligations.

Aramco cut the official selling price for light crude for September shipments to its lowest level in six years, a step sources described as aimed at attracting buyers amid the prevailing market uncertainty.

The sources indicated that Riyadh is offering additional crude oil shipments for loading from the Egyptian port of Sidi Kerir on the Mediterranean Sea. However, Asian buyers are hesitant to ship, fearing the continued instability threatening supply chains.