Aramco to supply full volumes to Asia despite Opec+ oil cuts: sources

SAUDI Aramco has told at least four customers in North Asia they will receive full contract volumes of crude oil in May, several sources with knowledge of the matter said on Monday (Apr 10).

The steady supply comes even as the Organization of the Petroleum Exporting Countries (Opec) and its allies, known as Opec+, surprisingly announced an extra output cut of 1.16 million barrels per day (bpd) from May for the rest of the year.

People now wonder how the additional voluntary cut would reflect in the actual supply, or if it is merely a measure to shore up oil prices, a source at an Asian refiner said.

Oil demand is expected to be weak as several refiners in Asia, such as Sinopec, S-Oil, Fuji Oil and Idemitsu, have planned maintenance in May.

Crude benchmarks jumped 6 per cent last week after the major oil producers jolted the market with the additional output reduction.

Saudi Arabia, the world’s top oil exporter and the de facto leader of Opec+, raised prices for the flagship Arab light crude it sells to Asia for a third month in May. It also increased the prices of other oil grades to Asian clients amid expectations of tighter market supply.

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Meanwhile, the Abu Dhabi National Oil Company (Adnoc), a state-owned oil giant from the United Arab Emirates, has informed at least three buyers in Asia that it will supply full contractual volumes of crude in June, trade sources said. REUTERS