Saudi Arabia will maintain the level of oil supplies to Asia despite the decision of OPEC – mass media
[ad_1]
Saudi Arabia, through state-owned Saudi Aramco, will supply the full volume of oil to several North Asian buyers in May, despite a promise to cut production by 500,000 barrels per day as part of the OPEC+ decision.
It is reported Reuters citing several informed sources.
Earlier, the Organization of the Petroleum Exporting Countries (OPEC+) announced an additional production cut of 1.16 million barrels per day (b/d) from May to the end of the year.
Investors were closely watching Saudi Aramco’s monthly distribution as an indicator of whether planned production cuts could lead to reduced supplies to Asia, the world’s biggest oil-importing market.
The market is watching to see if further voluntary output cuts will affect oil supply or if the decision is only to boost oil prices, an agency source at an Asian refinery said.
Some investors are optimistic about the recovery of demand for oil in China and expect that the supply on the world market will decrease in the second half of the year and push prices to the level of $100 per barrel.
Abu Dhabi National Oil Company, an oil giant from the United Arab Emirates, has also told at least three buyers in Asia that it will deliver the full contracted volume of oil in June, the agency’s sources said.
The UAE plans to cut oil production by 144,000 barrels per day starting in May as part of OPEC+ production cuts.
We remind you:
Oil prices rose sharply after OPEC+ suddenly announced a cut in oil production, threatening a new inflationary push in the global economy.
On April 2, Saudi Arabia and a number of other OPEC+ countries announced a further reduction in oil production by approximately 1.16 million barrels per day
[ad_2]
Original Source Link
