2023-09-12 05:40:29
Aramco commits to full supplies to Asia despite production cuts
Informed sources told Archyde.com yesterday, Monday, that Saudi Aramco has notified at least five buyers in North Asia that it will supply the full contracted quantities of crude oil next October, despite the extension of the voluntary production cuts that it announced. The kingdom.
The world’s largest oil exporter said last week that it would extend the voluntary reduction of one million barrels per day until the end of the year, which led to the price of Brent crude exceeding $90 per barrel for the first time this year.
Some other bullish signs emerged over the weekend, as deflationary pressures in China eased slightly in August as consumer prices rose, a positive sign for the world’s largest oil importer.
Financial markets are also taking into account the low probability of a recession in the United States.
Aramco decided to raise the official selling price of its Arab Light crude next month, but it is ten cents less than expected from the previous month.
Three trade sources said that Chinese refiners are keeping the total quantities scheduled for October at a level similar to this month of September, at regarding 50 million barrels.
One of the sources explained, “Despite the modest rise in prices, Saudi crude remains more expensive than any other crude. But since refineries are committed to the fixed-term contract, they cannot always request a reduction in supplies.”
Some Chinese refiners are already seeking to reduce supplies from Aramco this year.
Yesterday, Bloomberg quoted Han Chong Liang, investment strategist at Standard Chartered Bank in Singapore, as saying that “the indicators show that the market has entered the overbought zone,” adding: “In general, we believe that price consolidation between the market and the indicators is possible.” .
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