April 12, 2023 [Seeking Alpha] – Saudi Aramco (ARMCO) will reportedly maintain its crude supply to Asian refiners, despite its plan to cut production by 500K barrels per day, along with other OPEC+ countries.
The state-run oil giant will supply full contract volumes of May-loading crude to North Asian buyers, Reuters reported, citing unnamed sources.
It remains unclear if Aramco’s (ARMCO) output cut will actually affect supply, or if it was announced just to boost oil prices, the report quoted a source at an Asian refiner as saying.
OPEC+ production cuts totaling ~1.16M bbl/day will start in May and last till the end of the year, led by Saudi Arabia’s ~500K bbl/day reduction, a 211K bbl/day cut by Iraq, 144K bbl/day by U.A.E. and 128K bbl/day from Kuwait.
Note that Saudi raised its official selling prices for all oil sales to Asian customers starting in May amid expectations of tighter market supply.
Meanwhile, U.A.E.’s state-owned Abu Dhabi National Oil Company is said to have informed at least three Asian buyers that it will supply full contractual volumes of crude in June.
Crude oil futures were little changed early on Monday, with U.S. WTI crude (CL1:COM) flat at $80.70 and Brent crude (CO1:COM) 0.2% lower at $84.99.
Read why Stone Fox Capital, leader of Investing Group ‘Out Fox The Street’, believes investors are far too bullish on Exxon Mobil after OPEC+ production cut.
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