Exclusive: Aramco offers struggling refiners sweeter terms for crude

FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov

LONDON/NEW DELHI (Reuters) – Saudi Aramco has offered oil refineries in Asia and Europe the option to defer payments for crude cargo deliveries by up to 90 days as plants struggle with shrinking demand, sources said.

The credit terms, which Saudi Arabia’s national oil company offered through unnamed Saudi banks in recent weeks, are also seen as part of the Kingdom’s ongoing efforts to increase its market share, the sources told Reuters.

Aramco “are asking us to amend our existing agreement to include a bill of exchange which will give you basically an opportunity to pay through a bank in 90 days time,” one source at an Asian refiner said.

Reporting by Ron Bousso; Editing by Kirsten Donovan

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