Saudi Arabia to Deepen Oil Supply Cuts

Top oil exporter Saudi Arabia has told two Asian refiners that it will deepen supply curbs in January versus this month, industry sources said on Monday, just days before OPEC is expected to agree a second output cut.

State oil firm Saudi Aramco told the Japanese lifters that it will supply them with about 8 to 9 percent less crude than under their annual contract next month. In December, the refiners were told they would get a cut of only 4-5 percent versus contract.

“The reduction is larger than that for December,” one source said. He said the cuts were in two crude grades and there was no cut in one remaining grade.

Refiners in Japan, who take nearly a fifth of Saudi Arabia’s exported crude, are normally a good weathervane for the kingdom’s supply policy across the region, although Aramco can choose to modify its monthly allocations at a later date.


reuters

Reuters