Saudi Oil Giant Aramco Acquires Its First U.S. WTI Midland Crude Cargo
In a significant development for the global oil market, Saudi Aramco, the world’s largest oil company and leading crude exporter, has acquired its first cargo of U.S. WTI Midland crude oil. This purchase, reported by S&P Global Commodity Insights, marks Aramco’s entry into trading this grade, which has been part of the dated Brent benchmark since June 2023.
The cargo was purchased in the Platts trading window from commodity trader Gunvor, a move that underscores Aramco’s strategic push to expand its crude trading operations. According to Joel Hanley, Global Director of Crude and Fuel Oil Markets at S&P Global Commodity Insights, this is Aramco’s first WTI Midland purchase in the Platts window.
Aramco had previously sold WTI crude, making this recent acquisition part of its broader strategy to deepen its trading presence. Industry expert Adi Imsirovic, Director at Surrey Clean Energy, noted, “Aramco has clearly made a decision to get more involved in trading—we will see more and more of this.”
WTI Midland’s Growing Importance
WTI Midland, a crude grade produced in Texas, has gained significant traction among global oil traders since its inclusion in the dated Brent benchmark. The benchmark, which serves as a critical price indicator for approximately 80% of the world’s crude, is composed of several grades, including Brent, Forties, Oseberg, Ekofisk, Troll, and now WTI Midland.
The inclusion of WTI Midland in the Brent benchmark reflects its rising importance in global oil markets, particularly as the Brent assessment continues to be a key reference point for pricing.
Related Posts
Aramco’s Market Outlook
Saudi Aramco’s leadership remains optimistic about future oil demand. Amin Nasser, Aramco’s Chief Executive, forecasted steady growth of 1.3 million barrels per day (bpd) for 2024, building on last year’s average demand of 104.6 million bpd.
Nasser commented, “We still think the market is healthy… there is growth in the market.”
This latest move by Aramco highlights its strategic initiatives to strengthen its global trading position and capitalize on evolving market dynamics, particularly as the demand for crude oil continues to grow steadily.
