Japanese refiners to get full Nov term Saudi crude allocation: PAJ chief
Japanese refiners will get their full Saudi Arabian term crude supply nominated for loading in November as Saudi production is recovering fast from attacks on its oil facilities in September, Takashi Tsukioka, president of the Petroleum Association of Japan, said Thursday.
“I have been reported that ship loadings [in Saudi Arabia] will take place as requested for November [crude cargoes],” Tsukioka said at a press conference in Tokyo, adding that he does not expect to see any change in crude grades nominated for November loadings from Saudi Arabia.
Tsukioka said that some Saudi crude cargoes nominated for loadings in early October were subject to change in grades in the event buyers wanted to stick to loading cargoes on a specific date.
However, Tsukioka added that it is no longer the case for November loadings as Saudi Arabia is quickly recovering its oil production and capacity.
“Overall the refiners loaded exactly contractual volumes,” he said of October loading cargoes.
Saudi Arabia’s wellhead crude production stands at 9.9 million b/d, with production capacity of 11.3 million b/d, the country’s oil minister Abdulaziz bin Salman said earlier this month.
The country intends to return to full oil production capacity of 12 million b/d by the end of November.
Tsukioka also said on September 19 that Japanese refiners were getting full
Saudi Arabian term crude supply nominated for loading in October, days after the attacks on Saudi oil facilities on September 14.
In a courtesy call on September 18 with Omar M. Al Amudi, representative director of Aramco Asia Japan, Tsukioka said he was assured that Saudi Aramco will supply Japanese refiners term supply volumes as nominated for October.
Japanese crude imports from Saudi Arabia average 1.09 million b/d and account for roughly 35% of total oil imports over January-August, when the kingdom was still the largest supplier for Japan.
However, imports from Saudi Arabia for the first eight months of this year fell 5.8% from a year ago.