Asian oil refiners are disputing oil supply contracts with Saudi Aramco for 2027 after disruptions from the ongoing Middle East conflict. According to Bloomberg, shipping interruptions kept some Asian buyers from receiving their contracted Saudi crude in 2026, forcing them to buy oil on the spot market as supplies became available.
The main disagreement is whether these spot-market purchases should count toward refiners’ existing 2026 contractual commitments. Aramco reportedly wants some buyers to cover shortfalls by agreeing to buy additional crude under 2027 contracts, while refiners are reluctant to commit to higher volumes amid continued uncertainty over supply and shipping routes. These disputes are slowing negotiations and purchases of Saudi and other Middle Eastern crude.
The uncertainty comes as Asian refiners prepare their annual supply agreements, which typically need to be settled by the end of October. The United Arab Emirates’ ADNOC has allowed some spot purchases to count toward annual obligations, although its policy for 2027 remains undecided. Aramco is also considering changes to pricing benchmarks and delivery arrangements to improve supply flexibility as regional security risks continue.
