Saudi Arabia to import near record high diesel this summer
State oil giant will import up to 8.9 million barrels of diesel in June
Singapore/Dubai: Saudi Arabia will import near record high diesel volumes this summer, as it gears up to beat the sweltering heat and meet rising travel needs during Ramadan, trade sources said.
State oil giant Saudi Aramco will import up to 8.9 million barrels of diesel in June, up from an estimated 6.7 to 7.5 million barrels in May, according to the sources, who expect at least the same volume or higher to be booked for July.
Top oil exporter Saudi Arabia shipped in record diesel volumes of 8.99 million barrels in July, 2011, up from 8.13 million in June that year, government data published from 2002 through the Joint Organisations Data Initiative showed.
“I think this year, the July, 2011 number might be surpassed as Saudi’s diesel demand is growing every year and their new refinery is not expected at least until later this year,” a Gulf-based trader said.
Higher overseas purchases by Saudi Arabia should help boost spot premiums and support weak Asian gasoil margins as Aramco imports from countries such as India and Singapore.
Aramco relies heavily on imported diesel in summer when demand for electricity peaks with rising use of air conditioning as temperatures soar to a grilling 50 degrees Celsius.
