Riyadh – Mubasher: Saudi Arabia has increased its light oil sales to Asia by offering buyers more cargoes alongside the full contract volumes it was to provide in May, informed sources told Reuters on Wednesday.

This will boost the supply glut of light oil in Asia and increase competition with UAE-based producer Abu Dhabi National Oil Co (ADNOC), as well as with Russia, the sources who asked not to be identified because of the matter was private told the news agency.

"There will be less demand for light grades such as Das, Murban, ESPO, and Sokol," a Singapore-based trader said, referring to crude grades from Abu Dhabi and Russia.

Saudi state-owned oil giant Aramco has also priced its Arab Extra Light crude at a competitive level, after reducing the “grade's May official selling price to the lowest in eight months,” another trader revealed.

In January, Saudi Arabia notably trimmed its oil output in an attempt to lift oil prices and reduce the supply glut.

“Saudi Aramco plans to supply full volumes of crude to at 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,” Reuters reported.

In November 2016, OPEC members alongside some non-OPEC producers decided to reduce output in the first half of 2017 to support oil prices.

Accordingly, to comply with the agreement, Saudi Arabia trimmed its production of “medium-heavy oil to keep its overall output lower”; however, it has maintained its supplies to Asia so far this year, in order to defend its market share in the world's fastest oil-demand growth region against other producers.