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Saudi Aramco tells Asian refiners of possible oil supply restrictions from Jan
December 16, 2016 / 4:09 PM / 9 months ago

Saudi Aramco tells Asian refiners of possible oil supply restrictions from Jan

Dec 16 (Reuters) - * Saudi Aramco told Asian refiners it will suspend a supply flexibility clause - known as operational/lifting tolerance - from January until further notice - sources.

* Aramco tells customers the move is in line with the Saudi government’s decision to reduce output as part of OPEC supply cuts.

* Operational/lifting tolerance usually allows customers to request 5-10 percent more crude than the volumes allocated by Aramco in case they need more oil.

* Last week, Saudi Aramco told its U.S. and European customers it will reduce supply from January.

* Reduction of supply to Asia is expected to be smaller than to the United States or Europe. (Reporting by Nidhi Verma; Editing by Susan Fenton)

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