‘Riyadh to cut supplies to Asian buyers next month’
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