MOSCOW (MRC) -- Saudi Arabia, the world's top crude oil exporter, will supply full contractual volumes of August-loading crude to at least five Asian customers, sources with direct knowledge of the matter told Reuters.
However, the producer has turned down two of the buyers' requests for extra barrels, two of the sources said.
Saudi state energy company Saudi Aramco declined to comment on the matter.
Last week, the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, failed to reach an agreement to increase output from August.
After the breakdown of talks, Saudi Arabia raised the August official selling prices (OSPs) of all crude grades it sells to Asia, setting flagship Arab light crude at USD2.70 a barrel above the Oman/Dubai average for Asia, up 80 cents from July. The price hike was slightly above an expected month-on-month increase of 65 cents a barrel on average from five refinery respondents surveyed by Reuters.
As MRC informed before, Saudi Arabia and the United Arab Emirates have just reached a compromise over OPEC+ policy, an OPEC+ source said, in a move that should unlock a deal to supply more crude to a tight oil market and cool soaring prices.
We remind that Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), said in June he expects the company's deal with Saudi Aramco to materialise this year. Meanwhile, Yasir Al-Rumayyan, chairman of Saudi Aramco and the Governor of the Public Investment Fund, joined the board of Reliance as an independent director.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.