September 17, 2019 / 1:01 PM / a month ago

Factbox: Impact of Saudi oil outage on crude, product markets

(Reuters) - Attacks on Saudi Arabian oil facilities on Saturday shut down about 5.7 million barrels per day (bpd) of crude production, sending global oil prices soaring.

FILE PHOTO: Smoke is seen following a fire at Aramco facility in the eastern city of Abqaiq, Saudi Arabia, September 14, 2019. REUTERS/Stringer

A prolonged shutdown - at current levels, more than 5% of global oil supply - could lead to increased fuel prices for consumers. Saudi Arabia is the world’s biggest oil exporter, normally shipping more than 7 million barrels every day.

The key Abqaiq processing plant was hit at the weekend. It processes crude from the Ghawar, Shaybah and Khurais fields that produce Arab Light or Arab Extra Light.

A return to normal production may take months, two sources briefed on the matter said on Monday. Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, will hold a news conference on Tuesday.

The attacks have also hit Saudi refining capacity, but the extent is unknown. At least two refineries have had to reduce capacity.

Brent oil futures closed nearly 15% higher on Monday but declined in Tuesday trading. <O/R> LCOc1 The following outlines the impact on crude and product markets so far:

CRUDE

* Russia’s Rosneft (ROSN.MM) said on Tuesday its head Igor Sechin and the government of India had discussed the possibility of increasing Russian oil supplies in light of the attacks on Saudi infrastructure.

* PetroChina said its light crude loadings for October would be delayed by 10 days.

* At least six Asian refiners, including two in India, are set to receive their full allocated volumes into October.

* Saudi Arabia said it would continue normal exports this week from storage, but some deliveries have been disrupted.

* Buyers of Saudi crude are being asked to take heavier grades, several trading sources said, including Indian Oil Corp and PetroChina in September.

* Saudi Arabia was forced to shut its pipeline to Bahrain. The conduit supplies 220,000-230,000 bpd of Arab Light to the 267,000-bpd Sitra refinery.

* Bahrain’s state oil firm was scrambling to have ships bring about 2 million barrels of oil from the Saudi port of Ras Tanura to its refinery.

REFINED PRODUCTS

* Saudi Aramco will delay its liquefied petroleum gas (LPG) October cargo nomination announcements to Sept. 18 from Sept. 16, three industry sources said. China, Japan and South Korea are the top three LPG importers in Asia.

* Saudi Aramco’s trading arm is seeking oil products for prompt delivery following Saturday’s attacks.

* Aramco Trading Co, the trading arm of Saudi Aramco, is making enquiries to buy diesel for prompt delivery, two trade sources said. Saudi Arabia is typically a net exporter of diesel.

* At least two refined product tankers that were due to load at Saudi Arabia’s Jubail port in mid to late September have been diverted, data from analytics firm Vortexa showed.

* Operations at Saudi Arabia’s SASREF and PetroRabigh oil and petrochemical refineries have been slashed by up to 40%, two trading sources said, citing oil research firm IIR.

STRATEGIC RESERVES

* Energy Secretary Rick Perry said on Tuesday the United States was taking a wait-and-see approach on whether to tap its Strategic Petroleum Reserve.

* U.S. President Donald Trump on Sunday authorised the release of strategic reserves.

* South Korea said it would consider releasing oil from its strategic reserves if circumstances around crude imports worsened.

* The German government said its supply of oil was not affected by the attacks and any decision to release strategic reserves must be made jointly with members of the International Energy Agency.

Compiled by Julia Payne; Editing by Dale Hudson

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