RIYADH: Saudi Arabia has temporarily cut May term volumes of its major export grade, Arab Heavy, to Asia due to field maintenance, several market sources said this week. Total May-loading Saudi term volumes appear to have been cut for a few Asia-Pacific refiners, said an Asian refining source whose total volumes were, however, not trimmed. For other refiners, the drop in Arab Heavy crude volumes has been replaced by higher volumes of Arab Light or Arab Medium, both medium sour grades, other market sources said.
The cuts in Arab Heavy are said to be down to field maintenance from May to June, which appears to affect fields feeding the Arab Heavy blend, three market sources said. The maintenance does not appear to be major, however, said another market source. Asian refining sources affected by the cuts said the changes were minimal and would have little impact on their operations. “The total [overall] volume remains more or less the same. We can easily switch [our requirement for heavy sour crude] with Latin American crude. It is not a big issue,” said a trader with a Northeast Asian refiner.
