Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude oil in August, sources with knowledge of the matter said on Tuesday, according to Reuters.
The world’s top oil exporter cut supply to some refiners, mostly Chinese, in July as more cheap Russian oil heads to the world’s top oil importer while demand for Saudi crude climbed in Europe in the absence of Russian cargoes.
“The market seems less tight this month although fuel demand remains very strong,” said a Singapore-based trader.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, decided to increase output each month by 648,000 barrels per day in July and August, up from a previous plan to add 432,000 bpd per month. China and India, two major oil importers in Asia, meanwhile, are cutting back on supplies from Middle Eastern countries including Saudi Arabia and are taking more crude oil from Russia at steep discount.
Saudi Arabia has hiked its August official selling prices to a near-record high level to Asian buyers on the back of solid refining margins.—Arab News
