Saudi Aramco to keep full oil supplies to Asia in November despite OPEC+ cuts


SINGAPORE, Oct 10 (Reuters) – Saudi Aramco has told at least seven clients in Asia that they will receive full contract volumes of crude in November ahead of the winter peak season, multiple sources with knowledge of the matter said on Monday.

The producer is keeping supplies to Asia steady despite potential output cuts by drawing on inventories, the sources said.

Saudi Aramco could not be immediately reached for comment outside of business hours.

Sign up now for FREE unlimited access to

The full allocation of supply comes despite a decision by the Organization of the Petroleum Exporting Countries and its allies, including Russia, known as OPEC+, to cut its output target by 2 million barrels a day.

Saudi Arabian Energy Minister Abdulaziz bin Salman had said the actual supply cut would be around 1 million to 1.1 million bpd. Analysts expect Saudi Arabia, the United Arab Emirates and Kuwait to shoulder much of the production cuts because other OPEC+ members are falling behind on production targets.

Consulting firm FGE expects Saudi Arabia’s oil production target to fall by around 550,000 bpd in November from the previous month.

The world’s top exporter has also kept November crude prices for Asia largely unchanged against expectations of higher prices as it seeks to maintain its market share in the region. read more

Sign up now for FREE unlimited access to

Information from Florence Tan; Edited by Kim Coghill and Jacqueline Wong

Our standards: the Thomson Reuters Trust Principles.


Please enter your comment!
Please enter your name here

Share post:


More like this