Saudi Aramco may reportedly supply full crude contract volumes loading in May to several North Asian buyers. Despite the oil production cuts announced by OPEC+ countries, Saudi Aramco may resort to this move.
According to a Reuters report, Saudi Aramco’s monthly allocation was under the scanner of several investors. This was being seen as an indicator of whether planned output cuts could tighten the supply in Asia. It is also significant as Asia is reportedly the world’s biggest crude import market.
The report adds that as per a source at an Asian refiner, people are also wondering whether the additional voluntary cut will actually affect supply or whether it is just designed to shore up the oil prices. Before this, Saudi Aramco alsp raised prices for the Arab Light Crude it sells to Asia for a third month in May.
Apart from this, it also reportedly increased the prices of other oil grades to Asian clients amid rising expectations of tighter and less market supply of the commodities.
In addition to this, the Abu Dhabi National Oil Company (ADNOC) from the United Arab Emirates (UAE) has also informed that at least three buyers in Asia will be the ones to which it will supply full contractual volumes of crude in June, the report mentions.