Saudi Arabia and Asian Refiners Clash Over 2027 Term Oil Contracts

Saudi Aramco and Asian refiners are locked in a contractual standoff over 2027 crude term supply volumes. Saudi Arabia is demanding buyers increase term commitments after failing to fulfill 2026 quotas. Asian buyers reject the demand, arguing that shipping disruptions in the Strait of Hormuz and regional conflict forced emergency spot purchases that should count toward their term allocations. The dispute is currently dampening Asian spot demand for November-loading Middle Eastern crude and creating benchmark pricing volatility as buyers hesitate to lock in long-term volumes.