Despite OPEC+ Cuts, Saudi Maintains Crude Supply To Asian Refiners

Despite OPEC+ Cuts, Saudi Maintains Crude Supply To Asian Refiners

State oil giant Saudi Aramco (2222.SE) will supply full crude contract volumes loading in May to several North Asian buyers despite its pledge to cut output by 500,000 barrels per day, several sources with knowledge of the matter said on Monday. This comes after the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, surprised markets last week by announcing an extra output cut of 1.16 million barrels per day (bpd) from May for the rest of the year.

Saudi Aramco’s monthly allocation was being keenly watched by investors as an indicator of whether planned output cuts could tighten supplies in Asia, the world’s biggest crude import market.

People are wondering whether the additional voluntary cut will actually affect supply, or whether it is designed just to shore up oil prices, said a source at an Asian refiner who declined to be named as he is not authorised to speak to media.

The OPEC+ announcement caused Brent and U.S. West Texas Intermediate crude futures to jump 6% last week, returning to levels last seen in November. Last week, Saudi Aramco also surprised the market by raising prices for the flagship Arab Light crude it sells to Asia for a third