Saudi Arabia gets a new oil customer in Belarus

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Thu, 2020-04-30 03:54

MOSCOW: Belarus, which has long relied on Russian oil, has purchased its first crude from Saudi Arabia, according to state refiner Belneftekhim.

It has bought 80,000 tons of Arab Light crude oil from Saudi Aramco for delivery to the port of Klaipeda in May, Belneftekhim said on Wednesday.

The move reflects a competition in physical oil markets between Russia and Saudi Arabia as both fight for market share amid falling global oil demand.

Minsk has put much effort to diversify sources of crude oil amid its row with Moscow over oil prices, which led to a partial suspension of Russian oil supplies to Belarus.

In April, the states reached an agreement and pipeline oil supplies of Russian oil to Belarus were resumed in full, but Minsk said it would preserve alternative oil supplies anyway.

“It’s our first tanker (with Arab oil),” a Belneftekhim representative said.

Further cooperation with Saudi Aramco will depend on the “market situation,” he added.

The tanker Ionic Astrapi loaded crude at Sidi Kerir on April 27 and is expected to arrive at Klaipeda on May 11, according to shipping data on the Refinitiv Eikon terminal.

The oil will be delivered to refineries by rail.

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