Saudi Aramco halts crude supply to Pakistan as global oil flows shift

12:09

By: Dakir Madiha

Saudi Aramco halts crude supply to Pakistan as global oil flows shift

Saudi Aramco has withheld its March 2026 crude shipment to a Pakistani refinery, reflecting tighter global supply patterns as sanctions and shifting demand reshape trade routes. According to industry sources cited by Pakistan Today, the state oil company has redirected volumes toward larger Asian buyers amid stronger demand from China and India.

Aramco plans to ship about 58 million barrels to China in March, equivalent to roughly 1.87 million barrels per day, marking its highest allocation since late 2022, Reuters data showed. Deliveries to India have also risen, reaching an estimated 1.1 million barrels per day in February, their highest level since 2019, as Indian refiners reduce purchases of Russian oil.

The reallocation follows fresh Western pressure on Russian exports. On January 15, the European Union and the United Kingdom implemented a lower dynamic price cap on seaborne Russian crude at $44.10 per barrel, about 15 percent below the average Urals price. The limit, effective February 1, has tightened access to Russian barrels across several Asian markets.

India’s intake of Russian crude has dropped from 1.28 million barrels per day in December to around 1.09 million in early February, according to The New Indian Express, prompting refiners to seek alternative Middle Eastern suppliers. Saudi Arabia has emerged as a key beneficiary of this shift.

Market analysts describe current conditions as volatile, with prices reacting sharply to geopolitical negotiations. Crude futures have fluctuated amid ongoing but inconclusive nuclear talks between the United States and Iran in Geneva, which ended a third round of discussions on February 27 without tangible progress.

“Uncertainty dominates the market, and anxiety is driving prices higher,” said Tamas Varga, an analyst at PVM brokerage, quoted by CNBC. The lack of clarity on the Iran issue and potential U.S. policy responses continues to influence oil markets globally.

Pakistan’s refining sector faces increasing strain. Local refineries warned the Oil and Gas Regulatory Authority in late 2025 that reliance on imported fuel products was damaging domestic operations. With Aramco prioritizing larger Asian customers in a tightening supply environment, smaller economies like Pakistan are struggling to secure sufficient crude volumes.