Aramco to Cut Oil Supply to Asia

Saudi Aramco to Cut Oil Supply to Asia a 7th Month
By Nesa Subrahmaniyan

April 12 (Bloomberg) -- Saudi Aramco, the world's largest state oil company, will maintain a cut in crude oil supply to Asian refiners for a seventh month in May. xxx

Saudi Aramco will reduce mainly contracted supply of its Arab Heavy crude exports, said three refinery officials who received notices and asked not to be identified because of confidentiality agreements with the Dhahran, Saudi Arabia-based oil producer. The company has lowered shipments below contract levels since November.

The supply cuts are between 9 percent and 10 percent of contracted volumes, the officials said. Saudi Aramco is lowering exports to Asian refiners in April by an average 9 percent, and the cuts this month and in May are more than the 7 percent reduction in March shipments.

Saudi Aramco's export reduction is to comply with 1.7 million-barrel-a-day production cuts agreed last year by the Organization of Petroleum Exporting Countries.