Saudi Aramco will cut crude oil allocations by at least 520,000 bpd to its customers worldwide in September 2017, in relation to Saudi Arabia’s commitment to OPEC’s deal on global supply reduction
In a statement to Reuter, industry sources said that the state-run oil and gas company has decided to cut supplies to most buyers in Asia by up to 10 per cent in September 2017.
According to the source, the Kingdom’s allocations to crude oil to the worldwide customers in Europe will be reduced by 220,000 bpd in September 2017, while its total supply to the US has been set to be reduced by around 1.1mn barrels for next month.
The industry experts viewed that Saudi Arabia’s decision to cut crude oil allocation has exceeded its OPEC pledge which required the country to cut 486,000 bpd.
The source revealed that in August 2017, Saudi Arabia set the export limit for the US below 800,000 bpd, which is in line with the kingdom’s aim to target worldwide export at 6.6mn bpd.
Saudi Arabia and some other producers recently recommended monitoring to know if they should focus on exports as well as production examining in compliance with the pack, said the source. Among the gulf producers, Saudi Arabia and Kuwait have set the supply curb figure more than 90 per cent to meet OPEC’s supply reduction pact.
Although the country has cut supplies to Europe and the US, it has cut less in Asia during the past months. The sources described the move as to Saudi’s effort to retain market share in the world's fastest growing demand region.
