TomTom + 183 September 26, 2018 Saudi Arabia Looks To Fill The Gap In Iran’s Condensate Sales - a peculiar move that's clearly directed at capturing market share from Iran as the Saudis are freeing up 'Khuff Condensate' which is usually used as a blendstock by domestic refiners, using more Arab Extra Light (a blend that trades at a premium, even to Brent) as a replacement. Quote Share this post Link to post Share on other sites
Rodent + 1,424 September 26, 2018 27 minutes ago, TomTom said: Saudi Arabia Looks To Fill The Gap In Iran’s Condensate Sales - a peculiar move that's clearly directed at capturing market share from Iran as the Saudis are freeing up 'Khuff Condensate' which is usually used as a blendstock by domestic refiners, using more Arab Extra Light (a blend that trades at a premium, even to Brent) as a replacement. Interesting. So they normally refine this very expensive ultra light oil domestically. But now they are refining a cheaper grade and selling the extra expensive one. This either makes sense or it doesn't, regardless of Iran's circumstances, no? So why haven't they always sold the pricier version? Quote Share this post Link to post Share on other sites
TomTom + 183 September 26, 2018 7 minutes ago, Rodent said: Interesting. So they normally refine this very expensive ultra light oil domestically. But now they are refining a cheaper grade and selling the extra expensive one. This either makes sense or it doesn't, regardless of Iran's circumstances, no? So why haven't they always sold the pricier version? No, both Arab extra light and the Saudi condensate are blendstocks used to dilute heavier Saudi crudes in their domestic refineries - I guess the supply of this Khuff condensate is (much) lower than the supply of Saudi Extra Light, and they're just looking to displace a rather large quantity of Iranian condensates.. Quote Share this post Link to post Share on other sites
TraderTate + 186 TS September 27, 2018 My understanding is that it's rarely traded, but I think the UAE also started buying it last year to replace Qatari supplies when the shit hit the fan in that fun Gulf rivalry Quote Share this post Link to post Share on other sites
Kate Turlington + 44 KT September 27, 2018 I like how Bloomberg calls it the Saudis' own self-imposed "oil diet" Quote Share this post Link to post Share on other sites
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