Economics
Saudi Aramco Halts Egypt’s Oil Supplies Until Further Notice
- Egypt resorting to tenders to meet domestic demand after halt
- Aramco oil-products supply deal to Egypt valued at $23 billion
Saudi Arabia Holds Upper Hand as OPEC Seeks a Deal
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Saudi Arabian Oil Co. halted shipments of oil products to Egypt indefinitely, Egyptian Oil Minister Tarek El-Molla said, forcing the Arab world’s most populous nation to buy fuels on world markets at higher cost.
The state producer known as Saudi Aramco informed the Egyptian General Petroleum Corp. in early October that it would suspend supplies of refined oil products, leaving Egypt little choice but to resort to tenders for meeting local demand. It wasn’t clear at the time if the freeze was only for October. Aramco had agreed earlier this year to provide Egypt with 700,000 metric tons of refined products each month for five years in an arrangement valued at about $23 billion.