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Aramco to keep full oil supplies to north Asia despite OPEC+ cuts

Reuters / Ahmed Jadallah
Saudi Arabia raised prices for the flagship Arab light crude it sells to Asia for a third month in May

Saudi Aramco has told at least five customers in North Asia they will receive full contract volumes of crude oil in November, according to several sources.

The allocation comes despite a decision by the OPEC+ group – the Organization of the Petroleum Exporting Countries and allies including Russia – to lower their output target by two million barrels per day (bpd).

Saudi energy minister Abdulaziz bin Salman had said the real supply cut would be about 1 to 1.1 million bpd.

Analysts expect Saudi Arabia, the United Arab Emirates and Kuwait to shoulder much of the production cuts because other OPEC+ members are falling behind output targets.

Saudi Aramco could not be immediately contacted for comment outside office hours.

Last week, Aramco president and CEO Amin Nasser said the spare capacity of oil-producing nations would be wiped out the moment China ends its “zero-COVID strategy”.

The spare capacity stands at 1.5 percent of global demand, he added.

The Saudi-listed oil giant is on track to increase its capacity from 12 million barrels a day to 13 million by 2027.