Aramco Trading Company (ATC) sold its first-ever cargo of U.S. West Texas Light (WTL) crude to Hyundai Oilbank, South Korea’s smallest refiner by capacity, Reuters reported.
The shipment is a 1 million-barrel cargo of WTL and is expected to arrive at Hyundai Oilbank’s refinery in Daesan in October.
The shipment follows an agreement this year for Aramco to take a 17% stake in Hyundai Oilbank. The firms also signed two 20-year contracts for Aramco and its trading arm to supply 250,000 barrels per day (b/d) of crude from January 2020.
Saudi Aramco is using Motiva’s expertise in sourcing and pricing US crude to expand its trade volume, as the company aims to expand its US oil dealings to boost trade volumes.
Because of its experience as a refiner, Motiva is able to get good prices for U.S. oil.
It should be mentioned that, ATC buys Iraqi Basra crude for Motiva when the market is favorable.
ATC’s WTL shipments could increase as more of the light oil becomes available for export after new pipelines connect shale oil production from the Permian Basin to US Gulf Coast terminals.
It is worth noting that South Korea surpassed Canada to become the biggest buyer of US oil in June.