Pakistani refinery faces supply delay for March as Saudi Aramco tightens allocations

Saudi Aramco has not allocated a crude oil cargo for March to a Pakistani refinery amid heightened volatility in international oil markets, The News reported, citing industry sources.

According to the report, uncertainty in global crude trade has made it difficult to secure shipments for March. One local refinery was unable to finalise a cargo for the month due to tighter supply conditions.

They linked the situation partly to the reduced availability of Russian crude in global markets. Access to Russian oil has become more constrained following sanctions by the US, the European Union and other Western nations, along with the implementation of a dynamic price cap mechanism from February 1, 2026.

With Russian supplies limited, several importing countries have shifted to alternative grades. Industry officials said India has increased crude purchases from the Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco in recent months.

Sources said Aramco has adjusted supply allocations for some buyers in response to stronger demand from key markets, resulting in reduced volumes for at least one Pakistani refinery for March.

They described the crude market as volatile, with price movements closely tied to geopolitical developments, particularly negotiations between the United States and Iran. 

Pakistan relies largely on crude imports from Middle Eastern suppliers, including Saudi Aramco and Adnoc. One refinery has also sourced crude from the United States under bilateral energy cooperation arrangements.