Saudi Arabian Oil Co., or Saudi Aramco, has left its June term crude oil allocations unchanged for several European buyers, according to crude traders Monday.

Three European lifters contacted by Dow Jones Newswires said state-owned Aramco had kept allocations, mainly of light crude, at full volume in June, steady from May.

Market participants have said in recent months Saudi Aramco is withholding medium and heavy crude grades from Northwest Europe and the Mediterranean oil markets, a decision taken at the start of 2010 and thought to be due to lower production of those grades and strong demand from Saudi domestic refineries.

Better values for barrels of medium and heavy crudes in Asia as well as higher operating costs for transporting oil through the Suez-Mediterranean Sumed pipeline to the Sidi Kerir oil terminal, northern Egypt , have also shaped Aramco's decision to halt shipments of heavier crude to Europe .

Although price details for these term deals aren't known, the Mediterranean has been awash with both sour and sweet barrels in the last couple of weeks, with ample availability of Russian Urals crude due to a larger-than-expected export program from Russia , plus more Iraqi and Azeri crude on offer, traders said.
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