Saudi Arabia Expected To Meet Asia Oil Demand In Full Next Month
It’s not clear how Saudi Arabia’s output cuts will affect its shipments to buyers.
(Bloomberg) -- Saudi Arabia, the world’s largest oil exporter, looks set to meet demand from Asian refiners in full next month -- suggesting the world’s top buying region will be spared from the kingdom’s output cuts.
At least five refiners in the region got all the November-loading crude they asked for next month, according to people familiar with the matter. Saudi Aramco isn’t ceding its share of that market, another person with knowledge of the situation said. Several traders also said they saw no signs of cuts to Asia, the destination for about 60% of the Middle East nation’s shipments.
Saudi Arabia committed on Wednesday to a 526,000 barrels a day from its production target as part of its pledge to the OPEC+ alliance. It’s possible some of that supply will be lost from the domestic market where cooler weather will reduce the need for crude to be burnt for power generation.
It’s not clear how Saudi Arabia’s output cuts will affect its shipments to buyers. At least four European oil refiners also said they received full November allocations, although there are still some who could be curbed.
Saudi Arabia is also a large supplier to the US. Saudi Aramco didn’t immediately respond to a request for comment.
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