Aramco and Asian refiners clash over purchase obligations in 2027 talks
Refiners want spot purchases counted towards their 2026 commitments, while Aramco is seeking additional contracted volumes next year, traders said.
Saudi Aramco’s negotiations with Asian refiners for 2027 supply contracts have hit a disagreement over how to address unfulfilled purchases under existing agreements, according to traders involved in the talks.
The traders said some refiners want recent spot purchases recognised against their 2026 contractual commitments. Aramco is resisting that approach and seeking additional contracted purchases next year to cover the gap. At least one refiner has resisted a request to commit to more crude in 2027.
The shortfalls followed disruptions caused by the Middle East war, which reduced regional exports and prevented customers from collecting contracted oil. Refiners turned instead to spot cargoes. Aramco increased spot sales to Asia from early September as shipments through the Strait of Hormuz recovered despite continuing attacks on vessels.
The traders, who requested anonymity because they were not authorised to discuss the matter with the media, said excluding spot purchases would leave many Asian refiners unable to fulfil their 2026 contracts. Aramco declined to comment.
Uncertainty over wartime supply flows has made buyers reluctant to increase next year’s commitments. The disagreement is also delaying spot purchases of Saudi crude and supplies from other Middle Eastern producers. Annual contract talks usually finish by the end of October, before refiners buy January-loading spot cargoes in November.
Abu Dhabi National Oil Co is accepting spot purchases against some Asian refiners’ annual obligations this year, but has not decided whether to extend that arrangement into 2027. Aramco is also considering changes to contract pricing benchmarks and delivery arrangements, including potentially transporting crude directly to some Asian customers.
