Saudi Aramco, Iraq company SOMO halt oil sales to Nayara Energy

Saudi Aramco and Iraq's SOMO to Stop Oil Supplies to Nayara Energy.

Expert Analysis:

• Crude Supply Halt: Saudi Aramco and Iraq's state oil firm SOMO have stopped crude sales to Nayara Energy following European Union sanctions imposed in July on the Russian-backed refiner.

• August Supply Shortfall: Nayara, which normally sources about 2 million barrels of Iraqi crude and 1 million barrels of Saudi crude each month, received no shipments from either supplier in August, according to Kpler and LSEG shipping data; SOMO, Nayara, and Saudi Aramco declined to comment.

• Last SOMO Shipment: The final SOMO cargo, a Basra crude shipment, was discharged at Nayara's Vadinar port on July 29 by the VLCC Kalliopi, according to Kpler, LSEG, and industry sources.

• Final Saudi Delivery: Nayara received 1 million barrels of Arab Light from Saudi Aramco on July 18 aboard the VLCC Georgios, co-loaded with a similar volume of Basrah Heavy, marking its final Saudi shipment.

•  Refinery Utilization: Nayara's 400,000 bpd Vadinar plant, representing about 8% of India's refining capacity, has been operating at 70-80% utilization due to difficulties in selling products under EU sanctions.

• Shipping Adjustments: Since the sanctions, Nayara has relied on "dark fleet" vessels to transport fuels after mainstream shippers withdrew, according to shipping reports and LSEG data.