Saudi Aramco trading arm wants refined products after attacks: sources

SaudiAramco'stradingarmis looking for oilproductsfor prompt deliveryafterSaturday'sattacksonSaudi oil facilities, several tradesourcessaid this week.

SaudiArabia is set to become a significant buyer ofrefinedproductsaftertheattacksforced it to shut down more than half of its crude oil output and some of its gas, consultancy Energy Aspects said in a note on Sunday.

Theattacksmay have curtailed as much as 1 million barrels per day (bpd) ofAramco's refining capacity, Energy Aspects said, although this could not be confirmed and it was not clear to whichSaudiAramcorefineries it was referring.

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AramcoTradingCompany (ATC), thetradingarmofSaudiAramco, is making enquiries to buy diesel for the prompt delivery, two of the tradesourcessaid.

SaudiArabia is typically a net exporter of diesel.

"They are looking (for oilproducts) since they are trimming runs at some of the refineries," one source said, declining to be named as he was not authorised to speak to media.

He said the total volumes sought bySaudiArabia were not immediately clear, but that the prompt derivatives market wastradinghigher on Monday.

ATC is seeking 10 parts-per-million (ppm) sulphur diesel through private discussions, asking for "anything prompt," a second trader said.

It is also seeking 500ppm sulphur gasoil for delivery into the Arabian Gulf, most likely for domestic use, said a third source, in the refining industry.

Brent crude futures, the international benchmark, rose by as much as 19.5 per centto $71.95 per barrel during early Asiantradinghours.

A fourthtradingsource saidAramcoTradingmay have bought two ultra-low sulphur diesel cargoes from India and the Middle East, although this could not be confirmed immediately and further details were not available.

"The issue forAramcois how they can meet their huge commitments to deliverproductsin September and October," another diesel trader said.

The trader, who is expecting a delivery of aSaudidiesel cargo at the end of the month, said they have not yet heard any notifications of changes fromAramco.

An ATC official declined to comment on the matter.

"Tightness in ultra-low-sulfur diesel will be magnified especially since the newSaudiexport refineries produce 40 to 45 per centlow sulfur diesel," Gary Ross, founder of Black Gold Investors, told Reuters.