The state oil giant Saudi Aramco cancelled a rare offering of prompt cargoes to buyers in Asia, after the Organization of Petroleum Exporting Countries (OPEC) reached a deal to cut output late September, reported Reuters.
In a private tender, Saudi Aramco allowed selected buyers across the option to purchase Arab Light or Arab Heavy crude cargoes loading at Ras Tanura in October. However, the company subsequently cancelled the tender, according to Agraam News.
The company has excess crude to sell as at least two domestic refineries are scheduled for maintenance in the fourth quarter of 2016. Moreover, Asian buyers may have opted to lift minimum term volumes in November after official monthly prices rose more than expected.
Egypt Oil&Gas reported earlier that Aramco had planed to shut its refinery in Yanbu and its largest refinery in Ras Tanura in late 2016 for scheduled maintenance. Each shutdown could add 4m to 8m barrels of crude into global markets, depending on the extent of the shutdowns and their duration. Aramco may have chosen to move excess barrels into storage or increase exports of Arab Light and Arab Heavy, during the maintenance periods.