TOKYO, March 9 Saudi Aramco will supply full
contract volumes of crude oil to multiple Asian buyers in April,
three industry sources with knowledge of the matter said.
Despite commitments to cut production in an OPEC deal, Saudi
Aramco had agreed to supply at least one customer in Asia with
incremental crude on top of contracted volumes next month, as it
holds to a strategy of maintaining market share in the
fastest-growing market, one of the sources said.
Saudi Arabia led a pact between the Organization of the
Petroleum Exporting Countries (OPEC) and other major producers,
including Russia, Mexico and Kazakhstan, to cut global crude
output by about 1.8 million barrels per day (bpd) from Jan. 1,
and bring supply closer to demand.
The kingdom had cut beyond the level pledged in the
agreement and brought its output below 10 million bpd, Saudi
Energy Minister Khalid al-Falih said on Tuesday. Suppliers
participating in the curbs have cut more than 1.5 million bpd,
he said, exceeding what he called the market's low expectations.
While supplies to Asia have been little changed, Saudi
Aramco has been cutting supplies to some major oil companies in
Europe and the United States, industry sources have said. Nearly
half of Saudi's crude production is exported to Asia.
(Reporting by Osamu Tsukimori; Editing by Richard Pullin)