Saudi Aramco, the world’s biggest crude exporter, has told at least four refiners in North Asia that it will supply them with the full contractual volumes they have nominated for November, Reuters reported on Tuesday, citing sources familiar with the plans.
“Supply and demand for Saudi oil seems stable at the moment, despite high prices,” one of the sources told Reuters.
Aramco will ship the full amount of crude that at least four customers in North Asia have requested under their forward contracts.
Aramco raised the official selling price (OSP) for its flagship crude for Asia for the fifth consecutive month last week after Saudi Arabia extended its voluntary production cut by 1 million barrels per day (bpd) to December 2023.
Last Wednesday, the Saudis announced that they will cut oil production by another 1m b/d in November and December. The Saudis said that “this voluntary cut decision will be reviewed next month to consider deepening the cut or increasing production.”
Saudi Aramco raised the price of Arab Light, its flagship grade of crude, for Asia for November loading, a day after Saudi Arabia and Russia reaffirmed their ongoing oil supply cuts. The $0.40 per barrel increase was the fifth consecutive increase for the Arab Light blend to Asia, bringing the OSP to $4 per barrel above the Oman/Dubai average, the Middle East benchmark from which grades to Asia are priced.
Refiners and traders were largely expecting an increase in Saudi crude prices to most markets in November amidst strong demand and tighter supply, with OPEC+ and its main market participants Saudi Arabia and Russia continuing to restrict crude oil production and exports.