Saudi Arabia fulfilled its obligations under the OPEC+ deal by reducing oil supplies to the Asian market, Bloomberg reports, citing traders ‘ data.
According to the Agency, Saudi Aramco notified traders of a reduction in deliveries in June for at least 12 customers from Asian countries. Eight of them reported that the decline was quite significant — by 20-30% or even more. At the same time, the most severe cuts were mainly for oil buyers from China and India, and some of them tried to increase supplies.
Bloomberg notes that the reduction in Saudi oil supplies to Asia coincided with an increase in demand in the region on the back of the recovery of the Chinese economy and the growth of fuel consumption in India. The reduction in Saudi oil supplies to the largest regional market indicates that OPEC members strictly adhere to the rules of the agreement on limiting production, which came into force on May 1, Bloomberg notes.
The Agency also notes that Saudi Aramco will also reduce supplies to the United States and Europe, according to one of the Bloomberg sources; in some cases, it is a question of lowering amounts by 60-70%.
Under the terms of the new deal under the OPEC+ agreement, its participants will reduce production by 9.7 million barrels from May to July this year per day. Russia will have to reduce the amount of 2.5 million barrels per day.
According to the forecast of the International Energy Agency (IEA), in the second quarter of 2020, global oil demand will be, on average, 23.1 million barrels per day is lower than a year earlier.
On May 14, the price of Brent crude oil futures for delivery in July fluctuates on the exchange in the range of $ 28-31 per barrel.