Aramco to supply full volumes to Asia despite OPEC+ oil cuts - sources (updated)

Fuji Oil Co (Shinagawa)

10/04/2023 03:38

(Adds comments, background)
       SINGAPORE, April 10 (Reuters) - Saudi Aramco has told at
least four customers in North Asia they will receive full
contract volumes of crude oil in May, several sources with
knowledge of the matter said on Monday.
    The steady supply comes even as the Organization of the
Petroleum Exporting Countries (OPEC) and allies, known as OPEC+,
surprisingly announced an extra output cut of 1.16 million
barrels-per-day (bpd) from May for the rest of the year.
    People now wonder how the additional voluntary cut would
reflect in the actual supply, or if it is merely a measure to
shore up oil prices, a source at an Asian refiner said.
        Oil demand is expected to be weak as several refiners in
Asia, such as Sinopec, S-Oil, Fuji Oil and Idemitsu, have
planned maintenance in May.  REF/A 
        Crude benchmarks jumped 6% last week after the major oil
producers jolted market with the additional output reduction.
 O/R     
    Saudi Arabia, the world's top oil exporter and the de facto
leader of OPEC+, raised prices for the flagship Arab light crude
it sells to Asia for a third month in May. It also increased the
prices of other oil grades to Asian clients amid expectations of
tighter market supply.
    Meanwhile, the Abu Dhabi National Oil Company (ADNOC), a
state-owned oil giant from the United Arab Emirates, has
informed at least three buyers in Asia that it will supply full
contractual volumes of crude in June, trade sources said.

        
  

 (Reporting by Muyu Xu and Florence Tan; Editing by Jacqueline
Wong)
 ((muyu.xu@thomsonreuters.com; +65 9829 1075;))