Aramco maintains crude supply to Asia following production cuts

By Norhan Adel On Apr 10, 2023

Crude oil storage tanks at the Juaymah Tank Farm in Saudi Aramco's Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia — Image Credits to Simon Dawson | Bloomberg

Saudi Arabia’s Aramco will continue providing its supplied crude oil volume contracted in May to several North Asian buyers, despite its pledge to cut output by 500,000 barrels per day, according to informed sources told Reuters on Monday.

The oil giant’s monthly allocation have been closely observed following the supply cuts announced by OPEC+ countries last week. Trade sources also unveiled Abu Dhabi National Oil Company communicated similar full supply pledges to at least three Asian buyers.

Saudi Arabia has also announced last Thursday it will raise official selling price (OSP) for May-loading Arab Light to Asia was raised by 30 cents a barrel. Additionally, the Kingdom stated it shall increase OSP for Arab Medium by 30 cents, and Arab Heavy by 50 cents.

The global market is currently monitoring changes in Asian demand, given it is the world’s biggest crude import market. On the supply side, it is not clear yet if announced oil cuts will affect actual oil supply or prices only.