Saudi cuts oil exports to some buyers
DUBAI/SINGAPORE: Saudi Arabia has cut February term crude supplies to refiners in India and Southeast Asia, seeking to comply with an Opec deal, but it has held most of its exports to the rest of Asia steady for a second month, industry sources said on Wednesday.
State oil giant Saudi Aramco reduced February term supplies of mainly heavy crude to Indian refiners Reliance Industries and Hindustan Mittal Energy Ltd (HMEL), as well as to Malaysia’s Petronas, four sources familiar with the matter said.
Aramco has also cut oil supplies to another southeast Asian buyer for a second month in February, one of the sources said.
That means some major oil companies in Europe and the United States could see reductions of up to 18 per cent in their term volumes for February, the source said.
“Saudi Arabia and Kuwait are focusing their cuts on US and European customers as they target excess inventories and protect market share in Asia,” Energy Aspects analyst Virendra Chauhan said.
Saudi Aramco and the other companies could not be reached for comment. Details on the amounts of the supply reductions could not be confirmed.
Saudi’s February supply reductions to a handful of Asian refiners mark the start of cuts to a region left untouched in January at the onset of the Opec output deal.