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02-24-2011, 07:24 PM
Saudi Arabia in talks to fill Libya oil gap
Amena Bakr and Alex Lawler (Reuters)
Top world oil exporter Saudi Arabia is in talks with European companies affected by the disruption in Libyan supply and is willing and able to plug any gaps in supply, senior Saudi sources said on Thursday.
Oil industry sources said Saudi officials have been in touch with Spanish and Italian oil firms – among those hit by the Libyan shutdowns. The companies were assessing their needs and have yet to ask for any more Saudi oil.
The Saudi sources said Saudi Arabia was able to pump more of the kind of high-quality crude produced by OPEC member Libya and that it could be shipped quickly to Europe with the help of a pipeline that crosses the kingdom.
“We are in active talks with European refineries to find out what quality they want and we are ready to ship it as soon as they need it. This is the way buyers and sellers work. We need to find out what they want before we take any action,” a senior Saudi source told Reuters.
“Saudi is willing and capable of supplying oil of the same quality, either Arab Extra Light or through blending,” one of the sources said.
Industry sources said European oil companies have yet to ask for more Saudi oil and were also doubtful whether Saudi crude would be a suitable alternative because of quality differences.
While Saudi Arabia had indicated a willingness to supply extra oil, it has not specified the particular crude grades that may be on offer or the quantities, or how long any arrangement to pump more would last.
For European customers, the advantage of Libya is that it is only a short journey away across the Mediterranean.
The Saudi sources said Saudi Arabia could shorten the journey time for its crudes by shipping them through its East-West pipeline and then to the Mediterranean and on to Europe.
Some West African OPEC crude, such as from Angola could also be redirected to Europe, the sources said, while Saudi Arabia temporarily could send extra oil to Asia to compensate.
Despite the Saudi moves, OPEC has yet to make any changes to its formal output policy.
http://www.reuters.com/article/2011/02/24/libya-saudi-idUSLDE71N13Q20110224
Amena Bakr and Alex Lawler (Reuters)
Top world oil exporter Saudi Arabia is in talks with European companies affected by the disruption in Libyan supply and is willing and able to plug any gaps in supply, senior Saudi sources said on Thursday.
Oil industry sources said Saudi officials have been in touch with Spanish and Italian oil firms – among those hit by the Libyan shutdowns. The companies were assessing their needs and have yet to ask for any more Saudi oil.
The Saudi sources said Saudi Arabia was able to pump more of the kind of high-quality crude produced by OPEC member Libya and that it could be shipped quickly to Europe with the help of a pipeline that crosses the kingdom.
“We are in active talks with European refineries to find out what quality they want and we are ready to ship it as soon as they need it. This is the way buyers and sellers work. We need to find out what they want before we take any action,” a senior Saudi source told Reuters.
“Saudi is willing and capable of supplying oil of the same quality, either Arab Extra Light or through blending,” one of the sources said.
Industry sources said European oil companies have yet to ask for more Saudi oil and were also doubtful whether Saudi crude would be a suitable alternative because of quality differences.
While Saudi Arabia had indicated a willingness to supply extra oil, it has not specified the particular crude grades that may be on offer or the quantities, or how long any arrangement to pump more would last.
For European customers, the advantage of Libya is that it is only a short journey away across the Mediterranean.
The Saudi sources said Saudi Arabia could shorten the journey time for its crudes by shipping them through its East-West pipeline and then to the Mediterranean and on to Europe.
Some West African OPEC crude, such as from Angola could also be redirected to Europe, the sources said, while Saudi Arabia temporarily could send extra oil to Asia to compensate.
Despite the Saudi moves, OPEC has yet to make any changes to its formal output policy.
http://www.reuters.com/article/2011/02/24/libya-saudi-idUSLDE71N13Q20110224