SINGAPORE: Top oil exporter Saudi Arabia has cut supplies of February-loading crude for some Asian buyer by up to a quarter while meeting requirements of at least four others, several refinery and trade sources said.
This comes after Saudi Arabia pledged additional voluntary output cuts of 1 million barrels per day (bpd) in February and March under a deal between the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as Opec+.
Most Opec+ producers will hold production steady in the face of new coronavirus-induced lockdowns. Global oil prices are trading at their highest since February following Saudi’s decision.
Two North Asian refiners have received a 10 per cent supply cut from the state-owned energy giant Saudi Aramco, sources said. February allocations for at least three Indian refiners have been cut between 15 per cent and 26 per cent, the sources said on the condition of anonymity.
Last year, the company cut June-August shipments to Asian term buyers to comply with the Opec+ agreement.
Saudi Arabia exported about 7 million barrels per day of crude, of which around 70 per cent landed in Asia last year.
While the additional Saudi oil supply cut could help support the spot market this month, Asia’s crude consumption is expected to fall amid seasonal refinery maintenance. — Reuters
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