Saudi Arabia to Supply Full Crude Contract Volumes to Asia

Saudi Arabia to Supply Full Crude Contract Volumes to Asia

Several informed sources said that the giant Saudi Aramco plans to 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, Reuters reported.

This comes after the Organization of the Petroleum Exporting Countries (OPEC) and the 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.

Investors are closely watching the quantities Aramco supplies each month as an indication of whether the planned production cuts will reduce supplies to Asia - the world’s largest crude oil import market.

A source at an Asian refiner, who declined to be named because he was not authorized to speak to the media, told Reuters that observers were wondering whether the voluntary production cut would really affect supply or if it was only intended to support oil prices.

The OPEC+ announcement caused Brent and US 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 Arab Light crude it sells to Asia for a third month in May. It