With refining operations disrupted in the US, Saudi Arabia will increase exports to Asian markets in October, sources told Reuters.
In September, Saudi Arabia slashed exports to the region, but, according to the sources, exports will largely resume at normal levels in October.
Five crude purchasers are slated to receive their full component of oil while a sixth will have its Arab Extra Light shipment cut by 10%, Reuters reports.
This crude, according to a crude trader interviewed by Reuters, has been shifted from the US market. “Saudi allocations are all about the math. They can cut US allocations and supply that to Asia,” the trader noted.
Saudi Arabia cut its crude exports by 520,000 barrels a day (b/d) in September but is reducing those cuts to 350,000 b/d in October.