* To supply full contract volume for May
* Offers incremental Arab Extra Light to some buyers
* One buyer says no cut for Arab Heavy supplies in May
(Recasts, adds details)
By Florence Tan and Osamu Tsukimori
SINGAPORE/TOKYO, April 12 The world's top oil
exporter Saudi Arabia has stepped up sales of light oil to Asia
by offering buyers more cargoes on top of the full contract
volumes it will provide for May, industry sources with knowledge
of the matter said on Wednesday.
The offers will add to a glut of light oil supplies in Asia,
increasing competition with fellow Gulf producer Abu Dhabi
National Oil Co and Russia, said multiple sources, who declined
to be identified due to the sensitivity of the matter.
"There will be less demand for light grades such as Das,
Murban, ESPO and Sokol," said a Singapore-based trader,
referring to crude grades from Abu Dhabi and Russia.
State-owned oil company Saudi Aramco has also priced its
Arab Extra Light crude at a competitive level, another trader
said, after lowering the grade's May official selling price to
the lowest in eight months.
Saudi Aramco plans to supply full volumes of crude to least
six buyers in Asia in May, the sources said, despite cutting
production to comply with a deal between the Organization of the
Petroleum Exporting Countries (OPEC) and non-OPEC producers.
OPEC and some non-OPEC producers pledged to cut output in
the first half of 2017 to support oil prices.
To comply with the deal, Saudi Arabia has cut production of
medium-heavy oil to keep its overall output lower. But it has
kept supplies to Asia steady so far this year as it defends its
market share in the world's fastest oil-demand growth region
against other producers.
In line with its strategy, Saudi Aramco reduced Arab Medium
crude supplies and replaced it with Arab Light for some
customers, the sources said.
Still, a buyer who has previously received cuts to his Arab
Heavy term supplies said he will be getting the full contract
volume of the heavy oil in May.
Since the OPEC cuts, medium-heavy crude supplies from the
Middle East to Asia have tightened, incentivising traders to
move similar oil from Europe and the Americas to meet Asia's
(Reporting by Osamu Tsukimori in TOKYO and Florence Tan in
SINGAPORE; Editing by Paul Tait and Christian Schmollinger)