Saudi Arabia seeks extra gasoline imports
Plans to buy 180,000T in April-June through two tenders; Collapse of Libyan demand leads to Med overhang; BP and Litasco win supply deal - trade source
March 29, 2011 3:41 by Reuters
Saudi Arabia’s Aramco is seeking an extra five cargoes of gasoline through tenders in April-June, potentially reducing the Mediterranean supply overhang, traders said on Tuesday.
The firm will buy an extra 180,000 tonnes of gasoline through two buy tenders, trade sources said.
The first tender is for up to two cargoes a month for May and June and was awarded to BP and the trading arm of Russian oil company LUKOIL Litasco, a trader said.
This was for 91 and 95 ron gasoline for delivery into the Red Sea or the port of Ras Tanura.
Saudi Aramco has issued another spot tender for an extra cargo for April, closing on Wednesday, trade sources said.
Mediterranean gasoline prices have been pressured below levels for northwest Europe, partly because Libya has halted imports due to port closures and sanctions.
A Libyan state-owned gasoline tanker was also seized by rebels in mid-March in a move that further deterred suppliers from supplying the war-torn country.
April gasoline prices in the Mediterranean were priced at a discount of around $11 to prices in northwest Europe, trade sources said.
“This should help supplies in the Mediterranean since it’s very long gasoline because of Libya,” said a gasoline trader, referring to the extra Saudi demand.
Israel’s Oil Refineries Ltd has issued a spot tender to buy two gasoline cargoes for April and May in a move that could further sap regional supplies.
(Reporting by Emma Farge and Claire Milhench; editing by James Jukwey)