Saudi Aramco to provide full contract volumes of crude in October
Saudi Aramco has notified at least five north Asian buyers that it will supply full contractual volumes of crude oil in October, sources with knowledge of the matter said.
The full allocation comes as the Organization of the Petroleum Exporting Countries and their allies including Russia agreed to ease supply cuts by 400,000 barrels per day each month between August and December.
With rising supplies in view, Saudi Aramco has also slashed prices of all crude grades it sells to Asia in October by at least $1 a barrel to attract buyers.
“OPEC is still cutting by around 5 million bpd, but there seems to be plenty of oil from Saudi,” one of the sources said.
Despite the deep price cuts, none of the five buyers had asked for additional supplies, the sources said.
One buyer said spot crude prices remain attractive while another said they have purchased sufficient supplies from the spot market to meet their refining needs.
Source: Reuters (Reporting by Florence Tan; Editing by Christopher Cushing and Ana Nicolaci da Costa)