It has been reported that Egypt did not receive October allocations of petroleum aid from Saudi Arabia, pushing state oil buyer to seek out tender despite the severe dollar shortage and the growing debts to oil producers.
The Egyptian General Petroleum Corporation has re-entered the spot market in recent weeks to fill the gap, announcing its largest purchase tenders in months. This includes calls for some 560,000 tonnes of gasoil for October arrival, a steep rise from the roughly 200,000 tonnes sought in September.
Under a 700,000 tonne monthly supply deal, Saudi Aramco was expected to provide 400,000 tonnes of gas oil, 200,000 tonnes of gasoline, and 100,000 tonnes of fuel oil per month, none of which has been delivered for the month of October.
The agreement, which was signed this year in Cairo by Saudi Arabia’s King Salman, was meant to be carried out for five years under a $23bn deal. Though the reason for the suspension remains unclear, as reported by Reuters.
The Egyptian General Petroleum Corporation recently announced additional tenders for 665,000 tonnes of gasoil and 132,000 tonnes of gasoline for November arrival. These levels that could suggest a protracted delay or suspension of Saudi Aramco products.
