Amarco to provide Europe, Asia with extra oil

15 Jun 2011

(MENAFN) Dharan-based Saudi Aramco, Saudi Arabia’s state oil company and the largest crude oil exporter in the world, offered additional supplies to refiners in Asia and Europe, Times of Oman reported.

Six people from India, South Korea, Taiwan, China, and Europe-based companies, who asked to remain anonymous because they are involved in the confidential negotiations, said that Aramco offered to supply extra crude oil during later in 2011. Sources said that Amarco would supply full crude volumes in July to Asia and Europe. India can expect up to 400,000 extra barrels of oil a day, one source said.

Amarco may be trying to increase its penetration of the high-growth Asian market with this offering, Alexander Poegl, an analyst at Vienna-based JBC energy said.

Saudi Arabia, Kuwait, Qatar and the UAE proposed a raise in output to the Organization of Petroleum Exporting Countries (OPEC) at a June 8th meeting, but were opposed by Libya, Angola, Ecuador, Algeria, Iran and Venezuela. After the meeting Saudi Arabia’s oil minister, Ali Al Naimi said that Saudi Arabia would increase supply without a consensus.

The fighting in Libya decreased oil supply, contributing to a price of USD97.59 for a barrel of crude oil on the New York Mercantile Exchange in London on Tuesday. Analysts are concerned that high oil prices will suppress growth and fuel inflation.

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