SAUDIS SHIFT OWN OIL DIET TO SUPPLY BUYERS WHO ARE SHUNNING IRAN
As impending U.S. sanctions squeeze Iranian oil supplies, top OPEC member Saudi Arabia is changing its own crude diet to meet customer demand for alternative cargoes.
The trading arm of state-run producer Saudi Aramco is said to be offering an ultra-light oil known as Khuff condensate, a rarely traded grade that's typically processed in the nation's domestic refineries.
To free up this more valuable supply for export, the Middle East country is diverting its Extra Light crude to units that split it into raw materials for petrochemicals and fuels.
Saudi Khuff supplies are entering the market at a time of growing demand for condensate, as operators of purpose-built splitters in countries such as South Korea and Japan scramble for alternative feedstock following a halt in purchases of Iran's South Pars variety.
The countries have turned to cargoes from Norway and the U.S., as well as the oil-product known as naphtha, to make up for the shortfall.
Source: NAM NEWS NETWORK