Saudi Arabia Maintains Crude Supply to Asian Refiners Despite OPEC+ Cuts

Saudi Arabia Maintains Crude Supply to Asian Refiners Despite OPEC+ Cuts

Despite OPEC+’s surprising announcement last week about production cuts of 1.16 million barrels per day from May for the rest of the year, Saudi Aramco will maintain the same crude volumes supply to several North Asian buyers, Reuters reported.

People and investors, who were watching Aramco’s monthly allocation, are wondering whether the additional voluntary cut will actually affect supply, or whether it is designed just to shore the price up.

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 month in May. It also increased the prices of other oil grades to Asian clients amid expectations of tighter market supply.

 

 

 

 

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