Aramco’s contract to deliver fuel shipments to Egypt does not include clauses allowing for penalties for failing to deliver the product, a source told Al Mal. Egypt did not see the need to add the clauses as the payment and delivery terms were preferential, the source added. The government will deliberate the future of the agreement once key economic group ministers return from their meetings in the United States, the newspaper suggests. The Oil Ministry had confirmed Aramco has halted shipments for October that are part of an agreement to deliver 700k tonnes of refined oil products each month on a five-year contract worth c. USD 23 bn.

Not political in the least, but we’re going there to make sure: Aramco assured Egyptian authorities that November’s shipments would arrive on time — and that the decision not to ship product for October was not politically motivated, said Oil Ministry spokesperson Hamdy Abdel Aziz, Al Masry Al Youm reports. Egypt is reportedly sending a delegation to Saudi Arabia this week, government sources tell Youm7. The stated reason for the visit is, of course, you guessed it, strengthening bilateral ties. Abdel Aziz made vague rumblings to the effect that Aramco had simply told Egypt it would be unable to fulfill the October order.

Move along, move along. Nothing to worry about here, folks… Shipments of petroleum products from alternative sources have already started to arrive, the Oil Ministry’s spokesperson said, according to Al Masry Al Youm, denying reports of the market was facing impending shortages. International Cooperation Minister Sahar Nasr reiterated that the relations between Egypt and Saudi Arabia remain “special” and strong, with cooperation on projects such as the USD 1.5 bn development of Sinai is still ongoing.

Separately, Aramco has signed a number of MoUs with 18 Turkish companies “to further strengthen commercial and investment relations” between Saudi Arabia and Turkey on Tuesday in Istanbul, Anadolu Agency reported. Saudi Energy Minister Khalid Al Falih said “We are willing to work with Turkish companies under the Saudi Vision 2030. These MoUs will be the first step of this process. We plan to increase the investment amounts to a [USD bn].”

The news had the business community rattled yesterday, with suggestions that deteriorating relations with Saudi Arabia brought into question Saudi Arabia’s contribution to the war chest the Ismail government is building to back a devaluation of the pound. The issue cropped up in literally every conversation we had yesterday. Relations between Saudi and Egypt have been tense since Egypt split with the kingdom in a vote on Syria at the UN Security Council last weekend, with rumors of strained relations stretching back much further. The news sent shares tumbling on the EGX and helped send the EGP to a new record low against the USD.