Riyadh - Mubasher: The Saudi Arabian Oil Company (Saudi Aramco) will slash its August-loading shipments of medium and heavy crude grades to at least six Asian buyers, Reuters reported on Monday citing sources familiar with the matter.
Buyers in China, Japan, South Korea, Taiwan, and India knew about the supply cuts by Aramco over the weekend. This is the fourth consecutive month the company is reducing shipments for heavier grades.
Aramco will cut Arab Heavy crude supplies for August by about 10% of their contracted volumes while Arab Medium supplies were also reduced.
However, buyers were allowed to switch these supplies to lighter crude grades, two of the sources affirmed.
"They have cut supplies of medium and given us more of extra light and light (crude). Both grades suit us so there is no problem," said an official at India's Bharat Petroleum Corp Ltd (BPCL).
Saudi Arabia has been cutting its output and exports to comply with the OPEC+ agreement to cut output by 9.7 million barrels per day (b/d) between May and July.
OPEC's Joint Ministerial Monitoring Committee (JMMC) will meet on Tuesday and Wednesday to recommend the next level of cuts after compliance in the group hit 107% in June, up from 77% in May.