Asian refiners receive full allocations of Saudi crude for May

Singapore –
Major Saudi Aramco crude oil buyers in Asia benefited from term allowances for Saudi crude oil shipment in May, even as Saudi Arabia continues to cut production as part of the 39, OPEC + agreement.

May allocations for major buyers in Asia were met and traders said they were unaware of any cuts.

"We receive a full allowance [from Saudi Aramco], "said a trader with a North Asian refiner.

Some noted, however, that requests for additional volumes had not been met, as had been the case in previous months.

This is the fourth consecutive month that Aramco has committed to the volume of sales in Asia, while reducing its production as part of an agreement between OPEC and its allies.

Asian refiners are an important demand center for crude oil exports from Saudi Arabia. About 69% of its total exports in 2017 are destined for Asia, according to the OPEC Annual Statistical Bulletin.

Saudi Arabia, which is by far the biggest producer of OPEC, saw its production drop from 280,000 b / d in March to 9.87 million b / d, according to a study by S & P Global Platts at the beginning of the month.

It is the lowest production of the kingdom since February 2017.

The OPEC and 10 non-OPEC allies agreed in December to collectively reduce 1.2 million b / d of supplies by June.

Saudi Energy Minister Khalid al-Falih said he hoped to see the agreement extended when the coalition will meet in Vienna on June 25-26 to maintain the upward momentum of the market.

–Ada Taib, [email protected]

– Edited by Wendy Wells, [email protected]