Saudi Aramco will maintain full oil supply to Asia in November despite OPEC+ cuts

SINGAPORE (Reuters) – Saudi Aramco has told at least seven customers in Asia that they will receive full contractual quantities of crude oil in November, before the peak winter season, several sources familiar with the matter said on Monday.

The sources said the producer is keeping supplies to Asia steady despite potential production cuts by tapping into stocks.

Saudi Aramco could not be reached for comment outside of office hours.

The entire supply allocation comes despite a decision by the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, to cut the production target by 2 million barrels per day.

Saudi Energy Minister Abdulaziz bin Salman had said that the real supply cut would range between one million and 1.1 million barrels per day. Analysts expect Saudi Arabia, the UAE and Kuwait to incur a lot of production cuts because other OPEC+ members are falling behind production targets.

Consulting FGE expects target Saudi oil production to fall by about 550,000 barrels per day in November compared to the previous month.

The world’s largest exporter also kept November crude oil prices for Asia largely unchanged against expectations of higher prices as it seeks to maintain market share in the region. Read more

(Reporting by Florence Tan) Editing by Kim Coogle and Jacqueline Wong

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