Saudi Arabia plans to cut crude oil allocations in Oct by 350,000 bpd

8 Sep 2017   Saudi Arabia

Saudi Arabia will cut crude oil allocations to its customers worldwide in October by 350,000 barrels per day, an industry source familiar with Saudi oil policy told Reuters on Thursday. The cuts in allocations are in line with Saudi Arabia’s commitments to the OPEC-led supply reduction pact, under which the top oil exporter is required to cut 486,000 bpd. “Despite refiners’ request for more crude, the decision was made to maintain cuts,” the source said. Despite “healthy and robust” demand and refining margins in Asia, state oil giant Saudi Aramco will cut supplies to the world’s biggest oil consuming region by 1.8 million barrels in October, with the reductions affecting mostly customers in Japan, the source said. The deepest cuts in October were made to major oil companies where supplies were reduced by 225,000 bpd, while allocations to customers in Europe were lower by 70,000 bpd, […]

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