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Informed sources said today, Monday, that the giant Saudi oil company, Aramco, has informed at least three buyers in North Asia that it will supply them with the full contracted quantities of crude oil in January 2024.
According to Reuters, Saudi Arabia, the world’s largest oil exporter, announced in early December that it would extend voluntary production cuts by one million barrels per day in the first quarter of 2024, as part of the OPEC+ group’s efforts to support oil prices.
The sources, who requested to remain anonymous because they were not authorized to speak publicly, stated that because the official selling prices of Saudi oil to Asia were far exceeding market expectations, some refineries in China, the largest buyer of Saudi crude, requested smaller supplies.
Trade sources said that about 40 million barrels had been allocated to Chinese refineries for January loading, down from 46 million barrels in December.
The prices of other raw grades of the same quality as Saudi crude grades are being evaluated at much lower prices
But the sources said that despite the rise in Saudi crude prices, refineries in other countries in North Asia did not request smaller quantities.
A dealer with a Japanese refinery said, “I think many have thought about reducing supply volumes.” But this is not easy for us to do. “We need to maintain good relations with Saudi Arabia due to concerns related to energy security.”