Three buyers of Saudi oil have demanded between 30% and 50% more oil supplies than originally planned in April due to the heavily reduced oil prices by Saudi Arabia, Bloomberg has reported. The deadline for buyers in the region to tell the state producer Saudi Aramco how much oil they will be wanting next month was 9th March as part of their long-term supply contracts with the kingdom.
This development has the immediate knock on effect of fewer purchases within the spot market, potentially upending markets in which companies sell their crude via tenders and spot transactions, such as West Africa and some Russian crude streams.
ِAccording to the report, the Northeast Asian buyers plan to refine some of the additional purchases while stockpiling the rest into storage. Asia makes up two thirds of the Saudi oil exports.