‘Riyadh to cut sup­plies to Asian buy­ers next month’

New Straits Times - - Business -

SIN­GA­PORE/TOKYO: The world’s top crude oil ex­porter Saudi Ara­bia will cut sup­plies to most buy­ers in Asia by up to 10 per cent next month to com­ply with a pro­duc­ers’ deal to cut out­put, said mul­ti­ple sources with knowl­edge of the mat­ter yes­ter­day.

Of the seven re­finer­ies sur­veyed, four re­ceived their first sup­ply cuts since the Or­gan­i­sa­tion of the Pe­tro­leum Ex­port­ing Coun­tries (Opec) and non-Opec pro­duc­ers, in­clud­ing Rus­sia, agreed to cut out­put in Novem­ber.

Saudi oil sup­plies to China will be mostly cut by be­tween five and 10 per cent, said one of the sources, even though one buyer said it was re­ceiv­ing full al­lo­ca­tion and an­other said its cut was smaller than five per cent.

Sup­plies to South­east Asia and In­dia would drop by one mil­lion bar­rels from con­tracted vol­umes next month, said an­other source.

The wider Saudi cuts come as doubts have emerged about the ef­fec­tive­ness of the pro­duc­ers’ agree­ment.

Most of the Saudi cuts were in light grades such as Arab Light and Arab Ex­tra Light, said the sources. Reuters

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