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Aramco Trading, a wholly-owned company subsidiary of state-owned oil company Saudi Aramco, began commercial operations on 1 January. The launch forms part of the company's strategy to expand its downstream portfolio in Saudi Arabi and overseas.

Formally established as Saudi Aramco Products Trading Company, the new entity will replace the Product Sales and Marketing Department (PSMD) in importing and exporting refined petroleum products, commonly known in the industry as “system balancing” of refined petroleum products.

Starting with 80 employees, Aramco Trading’s role will be to support the parent company's strategy of maximizing its downstream integration and optimizing its growing global downstream presence.

The formation of Aramco Trading was first announced in February 2011. Since then, the company says it has been preparing for the launch of the business, establishing internal risk management and counterparty business management systems.

Aramco Trading will represent the state oil company in the sale and purchase of refined petroleum products such as fuel oil and residual products, condensates, naphtha, gasoline, middle distillate fuels and bulk petrochemical products.

With energy demand forecast to rise in the long term, Aramco said it will continue its downstream capital program with investments through its subsidiaries, affiliates and joint ventures in Saudi Arabia and abroad.

"The landscape for trading has shifted with evolving market dynamics, and that will bring both challenges and opportunities. Our company continues to be responsive and committed to balancing its system and create value through continuous market participation," said Said A. Al-Hadrami, president and CEO of Aramco Trading.