Saudi Arabia to supply full July crude oil volumes to some Asian buyers
Saudi Arabia has informed five Asian refiners that it will supply full contractual volumes of crude oil in July, five sources with knowledge of the matter said.
The world’s top crude exporter has also reinstated contracted volumes of Arab Heavy crude to one buyer after cutting supplies in the previous month, one of the sources said.
Three other refiners in Asia said they have not received their July allocation. Saudi Aramco could not be immediately reached for comment.
Last month, the state oil giant maintained full contractual supplies to Asia for June supplies by replacing Arab Heavy with Arab Light. The Arab Heavy was redirected to domestic power plants to meet the increased demand for electricity for summer cooling needs.
The Arab Heavy supply cut, combined with a drop in Venezuelan crude exports and robust demand in Asia, pushed up medium and heavy sour crude prices in Asia last month although light grades were lower because of ample supplies.
Saudi Aramco raised the official selling prices for all crude grades for its Asian customers in July, with flagship Arab Light rising to the highest in four years.
Saudi Arabia has told OPEC that it raised oil output to a little more than 10 million barrels per day (bpd) in May, a source familiar with the matter said on Monday, but still within its agreed target.
Source: Reuters (Reporting by Florence Tan in SINGAPORE and Osamu Tsukimori in TOKYO; editing by Richard Pullin and Christian Schmollinger)