Saudi Arabia's state-owned shipping company is taking Valero to court, alleging the Houston oil company sold one of its ro-ros bad fuel.

The National Shipping Company of Saudi Arabia, better known as Bahri, filed the $1.13m suit in Houston federal court Monday.

It alleges Valero filled the 26,000-dwt Bahri Yanbu (built 2014) with 750 tonnes of "unsuitable, substandard, defective, contaminated, unfit, non-conforming, off-speculation bunker" last March in Houston.