Saudis Slash Oil Supply to Some Buyers After Pledged OPEC+ Curbs - Bloomberg
Saudi Arabia slashed crude oil supplies to at least nine refiners in Asia and Europe after the kingdom volunteered to cut its production by 1 million barrels a day for February and March.
Aramco will supply less crude as part of long-term contracts next month, giving some Asian processors as much as 20%-30% less than they had sought, according to company officials who received the notices but asked not to be identified as the information is private. A European refiner that typically buys small volumes from Saudi Arabia will not get any cargoes for February.
Supply cuts were focused on heavier grades such as Arab Medium and Arab Heavy, the officials said. State-owned Aramco declined to comment when contacted on the matter.
Saudi Arabia’s move to sell less oil comes amid an overall decline in crude demand across Asia due to peak refinery maintenance season from March to April. Separately, the resurgence of Covid-19 infections across Asia and Europe, and the declaration of a state of emergency in parts of Japan and Malaysia are also reducing fuel consumption and keeping refinery run rates at low levels.
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