ENERGY ASIA: Petroleum deliveries unaffected by Iran-Israel conflict: Aramco

Aramco's deliveries of crude and refined products have been unaffected by the conflict between Iran and Israel, a senior company official told Platts on the sidelines of Energy Asia in Kuala Lumpur on June 17.

"Yes, supplies and deliveries are as usual," the official said when asked about the impact of the escalating Iran-Israel conflict. Platts is part of S&P Global Commodity Insights.

The official's comments come after it was discovered that the collision between the VLCC Front Eagle and Suezmax Adalynn off Khor Fakkan on the morning of June 17 was accidental. The fire was extinguished, and there were no security concerns involved.

Meanwhile, even though there have been no reports of transit shutdowns through the Strait of Hormuz, some ship owners have been reluctant to schedule new voyages in the Gulf as they evaluate the potential risks.

Platts assessed the benchmark Persian Gulf-China VLCC rate as up 25% day over day to $13.27/mt on June 16, marking the highest rate since May 27, following a 6.7% increase June 13.

Saudi Aramco has likely allocated its full July crude oil term supply to Asian refiners, regional refining and trade sources said June 10, with volumes to China steady and those to other refiners unchanged month over month.

Sources at five North Asian refiners outside China, a Southeast Asian refiner and a South Asian refiner reported receiving their requested volumes from Aramco for July, with several indicating no changes compared with the previous month.

One refinery source said that they had not requested any incremental volumes from the producer for July.

July allocations to regional heavyweight China were reported at 47 million barrels, largely remaining steady compared with 47.5 million barrels allocated for June.