Aramco Trading announces sales of 6 million barrels per day
Oil prices rose during trading yesterday, Tuesday, for the second day, despite the rise of the dollar, but the state of optimism is driven by the recovery of demand in China, the largest importer of crude in the world, taking into account fears of a shortage of supplies following the closure of a major export terminal in Turkey following the earthquake.
Brent crude futures rose 2.3 percent to $82.87 a barrel by 16:32 GMT, while US crude futures rose 2.8 percent to $76.19 a barrel.
The dollar index rose 0.3 percent during yesterday’s trading. The rise of the US currency makes commodities denominated in it less attractive to holders of other currencies.
Ricardo Evangelista, Senior Analyst at ActivTrades Brokerage Company, attributed the rise in oil prices for the second session in a row, as a result of investors’ hopes for a recovery in demand rates in the coming period.
Evangelista told Asharq Al-Awsat: “It is interesting that oil is witnessing the current gains at a time when the US dollar is shining, which is the scenario in which the price of a barrel usually collapses … and the price of a barrel found support in reopening the Chinese economy, following ending Beijing.” For the general closure policy to control the (Corona) virus, which led to an increase in the demand for crude oil this year.
“At the same time, the earthquake that swept Turkey forced the authorities to close the main export terminal, which is responsible for exporting one million barrels per day, which negatively affected the supply side and contributed to the rise in oil prices,” he added.
Operations stopped at the oil export terminal in the Turkish port of Ceyhan, which has a capacity of one million barrels per day, following a major earthquake struck the region.
Saudi Arabia, the largest oil exporter in the world, raised the day before yesterday, its crude prices to buyers from Asia for the first time in six months, amid expectations of a recovery in demand, especially from China.
On the other hand, the CEO of Aramco Trading Company said yesterday, Tuesday, that the company currently sells six million barrels per day of crude oil and products.
Saudi Aramco and other oil producers in the Middle East have stepped up their commercial efforts as a way to raise income following the collapse of oil prices in 2014.
These producers slowly gained market share from oil majors and commodity trading groups, using access to their own grades and strength in the refining sector to compete aggressively.
Ibrahim Al-Buainain, CEO of the company, said during the Indian Energy Week conference in Bengaluru that the company is working very well and is expanding, and that it recently opened the Aramco Trading Company – America.
He pointed out that, therefore, the company’s sales amounted to regarding six million barrels per day (of all liquid products).
Motiva Trading, the trading arm of Aramco in Houston, USA, changed its name to Aramco Trading – America and became a wholly owned subsidiary of Aramco Trading earlier this year.
Under the purchase agreement, Aramco Trading – America became the sole supplier and contractor for Motiva, which owns the largest refinery in North America with a capacity of 630,000 barrels per day.
