Oil Updates — Crude edges down; Saudi Aramco offers more vacuum gasoil supplies for May

Brent crude futures shed $1.77 cents, or 2.09 percent, to $83.00 a barrel 12.00 p.m. Saudi time, while West Texas Intermediate US crude fell $1.71 cents to $79.12 a barrel. (Shutterstock)
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Updated 19 April 2023
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Oil Updates — Crude edges down; Saudi Aramco offers more vacuum gasoil supplies for May

RIYADH: Oil dropped on Wednesday as the market weighed potential interest rate hikes from the US Federal Reserve that could slow growth and dampen oil consumption, offsetting falling US inventories and strong Chinese economic data. 

Brent crude futures shed $1.77 cents, or 2.09 percent, to $83.00 a barrel 12.00 p.m. Saudi time, while West Texas Intermediate US crude fell $1.71 cents to $79.12 a barrel. 

Saudi Aramco offers more vacuum gasoil supplies for May 

Saudi Aramco offered more vacuum gasoil supplies to be exported from its Jazan refinery in May, according to traders and shipping data, in a sign that the refinery is yet to ramp up to full output, Reuters reported.  

The Jazan refinery, Aramco’s newest facility, had been expected to ramp up output for 10-parts-per-million gasoil and cut VGO exports this quarter when it hits full capacity. 

However, Aramco recently offered three cargoes of 525,000 barrels of VGO each for loading out of Jazan in May, shipping records showed, up from two cargoes in April. 

The cargoes are slated for loading between May 1-3, May 11-13, and May 21-23. Aramco usually offers up to two VGO cargoes per month, according to trade sources and past tender records. 

VGO, a residual oil left over from petroleum distillation, is typically used as a refinery feedstock to produce diesel. 

The rise in Aramco’s VGO exports also comes at a time when diesel refining margins have weakened globally. 

Asian refiners’ diesel margins have collapsed by more than 50 percent to $14.46 a barrel on Tuesday, compared with the start of the year, Refinitiv data showed.  

Meanwhile, benchmark Northwest European diesel refining margins fell below $16 a barrel this week, their lowest since Feb. 25, 2022, as imports into the region remained high. 

Norwegian oil and gas platform resumes operations after spill 

Operations at the Njord A oil and gas platform in the Norwegian Sea resumed at normal levels on Tuesday after being halted because of an oil leak, a spokesperson for operator Equinor said. 

The platform had been depressurized and production shut down on Monday after discovery of an oil leak of less than 200 liters that is likely to have come from a sampling cabinet, the spokesperson said. 

The outage has cut gas supplies by 5.6 million cubic meters per day, according to Norway’s gas pipeline system operator Gassco. 

Output from the Njord field stopped in 2016 but resumed in December after upgrades to allow production to continue until 2040, tying in the nearby Bauge and Fenja fields. 

(With input from Reuters)  


Saudi Aramco achieves significant progress in its gas production plan

Updated 26 February 2026
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Saudi Aramco achieves significant progress in its gas production plan

RIYADH: Saudi Aramco has announced the achievement of significant progress in its plan to expand gas production, with the start of production at the Jafurah field, the largest unconventional gas field in the Middle East, and the commencement of operational activities at the Tanajib Gas Plant, one of the largest gas plants in the world.

The oil giant aims to increase its sales gas production capacity by approximately 80 percent by 2030 compared to 2021 production levels, reaching nearly 6 million barrels of oil equivalent per day from total gas and associated liquids production, according to the Saudi Press Agency.

This is expected to generate additional operating cash flows ranging between $12 billion and $15 billion in 2030, subject to future demand for sales gas and liquids prices.

President and CEO of Saudi Aramco, Amin Al-Nasser, said: “We are proud to commence production at the Jafurah field and begin operations at the Tanajib Gas Plant. These are major achievements for Saudi Aramco and the future of energy in the Kingdom. Our ambitious gas program is expected to become a key source of profitability.”

He affirmed that these mega-projects contribute to meeting the growing domestic demand for gas, supporting industrialization and development in several key sectors, in addition to producing significant quantities of high-value liquids.

Al-Nasser expressed his gratitude for the support, trust, and attention that Saudi Aramco receives from the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, crown prince and prime minister, noting that this has had the most profound impact on the company’s achievements and distinguished projects that serve the Kingdom’s Vision 2030.

The gas extracted from the Jafurah field is expected to support the Kingdom’s growth targets in key sectors such as energy, artificial intelligence, major industries, and petrochemicals, potentially providing a major boost to the Kingdom’s economy and strengthening its position among the world’s top ten gas producers.

Saudi Aramco began first producing unconventional shale gas from the Jafurah field in December 2025, with technology playing a pivotal role in unlocking the potential of the Jafurah field and establishing it as a global benchmark for unconventional gas development. 

Since its inception, the project has leveraged technology to help reduce drilling and stimulation costs and enhance well productivity, contributing to its strong economic prospects.

The Jafurah area covers 17,000 sq. km and is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates. The Jafurah field project aims to produce 2 billion standard cubic feet per day of sales gas, 420 million standard cubic feet per day of ethane, and approximately 630,00 barrels per day of gas liquids and condensates by 2030.

The Tanajib Gas Plant is a key pillar in Aramco’s strategy to increase gas processing capacities and diversify its energy product portfolio, helping to foster long-term economic growth. 

Operations began in December 2025, and its raw gas processing capacity is expected to reach 2.6 billion standard cubic feet per day in 2026. The start of operations at the Tanajib Plant coincided with the commencement of production from the Marjan field expansion and development program. 

The plant is distinguished by its digital integration, enhanced operational efficiency, capability to execute complex projects, and optimal use of resources. It processes raw gas associated with crude oil production from the offshore Marjan and Zuluf fields.

Aramco’s gas expansion is expected to create thousands of direct and indirect job opportunities, generating significant added value and strengthening its position as a reliable energy provider. 

It also helps meet the growing demand for natural gas and enhances its supply to national industries. 

The expansion strategy supports efforts aimed at achieving the optimal energy mix for local electricity generation, advancing the Kingdom’s liquid fuel displacement program, which will have a positive environmental impact, supporting the Kingdom’s ambition to achieve net-zero emissions by 2060, enhancing energy security, and contributing to building a more diversified national economy.