SINGAPORE/NEW DELHI: Saudi Aramco plans to meet full contractual crude oil volumes to most Asian buyers in April, but will reduce supply of heavier oil to Chinese and Indian customers due to oilfield maintenance, five sources with knowledge of the matter said on Monday.
The reduction comes after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, decided early this month to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter.
Saudi Aramco, the world’s top crude exporter, has notified Asian customers of their April crude allocations, days after releasing the official selling prices for the same month.
Saudi crude allocation for China was estimated at 47.5 million barrels for April (1.58 million barrels per day), two of the sources said, similar to the 47 million barrels allocated in March.
At least one Chinese buyer had requested to lift more Arab Medium and Arab Heavy crude but its request wasn’t met, said the sources who were not authorised to speak to media and declined to be identified.
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In India, at least one buyer received the full volumes it sought, although there was a reshuffling in grades with heavier crude supply reduced, according to one source.
It was not immediately clear how much the supply of heavier crude will be reduced by and which oilfields will be shut for maintenance.
Saudi Aramco did not immediately respond to a request for comment outside office hours. It unexpectedly raised prices for heavier grades in April, which narrowed the price gap with lighter grades.
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