Saudi Arabia will cut its exports of crude oil by 350,000 barrels per day (b/d) during the month of October, an industry source told Reuters.
This cut, if it goes into effect, would be in line with industry expectations that Saudi Arabia will raise the price of its crude in October, as previously reported by Reuters.
Major oil companies will bear the brunt of the cuts, taking a hit of 225,000 b/d, according to Reuters’ source. Exports to Europe and the United States will also drop.
This reduction, if it materializes, will fall short of the 520,000 b/d that Saudi Arabia cut in September.
Saudi Arabia has been one of the main drivers behind an attempt to drive down global oil supplies and increase prices. In January, OPEC and major, non-OPEC oil producers agreed to reduce production by 1.8 million b/d.
The effort has largely failed to push prices up as increased output from Libya and Nigeria and resilient US production have undermined the agreement.