State-run oil firm: Saudi Aramco, will limit oil volumes to Asia by July

Oil futures

Monday, the world’s top crude oil exporter: Saudi Arabia have decided to limit volumes of crude to some Asian buyers in July, this is to deepen cuts in allocations to the United States. In relevance to this, State-run oil firm: Saudi Aramco said that they would supply full contracted crude volumes to at least five Asian crude buyers, which were mainly in North Asia and lower volumes for some customers in India, China and South Korea.

Saudi Aramco informed Asian refiners in May that they would lessen oil output to Asia by about 7 million barrels in June, its first cuts for that region since OPEC-led supply cut took effect in January. Cuts in oil allocations to Asia in July would have a total of about 300,000 barrels per day, deeper than in June.

With regards to Saudi Aramco’s July plans, the oil firm has claimed to cut supplies to India by close to 200,000 barrel per day and China by about 110,000 barrel per day; while supplying full volumes to retailers in Japan and as well as Taiwan. Sources also confirmed that supples to South Korean refiner were also lessened.

In accordance to this, the allocations to the United States have been lowered suggestively and Saudi Aramco continued to curtail supply to Europe. The said volumes for the United States would be cut by about 35% in July, while Europe supplies will be reduced by about 11% compared to June.

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