Saudi producers’ operating rates improve on Aramco’s supply reassurance

According to a statement published on Saudi Arabia’s stock exchange, Tadawul, operating rates at four major petrochemical companies are gradually improving. The companies reduced their output amid feedstock shortages stemming from drone attacks aimed at the country’s key oil processing plants Khuaris and Abqaiq.

Improving production rates came in line with Saudi Aramco’s announcement on the process of restoring oil output yesterday. The news eased off supply woes and caused oil prices to erase the half of their Monday spike.

Accordingly, the shortage rate in Saudi Basic Industries Corporation’s (SABIC) feedstock supply has been lowered from 49% to 30%. Tasnee also reported that the 41% shortage in feedstock supply has improved to approximately 25%.

Yanbu National Petrochemical Company’s (Yansab) feedstock shortage is now hovering at around 17% from 30% on September 16. The feedstock shortage at Advanced Petrochemical Company (APC) has been down to 20% from a 40% partial curtailment.

All four petrochemical companies stated that they will fully return to normal operation rates by the end of this month in accordance with resuming oil production rates in the country. Furthermore, they are continuing to work on evaluating the final effects of the incident to determine the financial impact.