Saudi Arabia to cut oil deliveries to US and European customers

Saudi Arabia has told its US and European customers it will reduce oil deliveries from January as Russia signalled that a commitment from non-OPEC producers to join OPEC’s output limits still faced challenges.
Saudi Arabia told the customers about lower supplies in line with the output reduction agreed by the Organization of the Petroleum Exporting Countries (OPEC) last week, according to a Gulf oil industry source.
“We told our customers of the allocations and the compliance with allocations (for the cuts) for Saudi Arabia is 100 percent,” the source said.
He said cuts to Asian refiners would be lower than those to Europe, the US and to major oil companies.
“We are cutting more in the US because the inventories are very high,” the source said.
Among non-OPEC producers, only Russia and Oman have pledged cuts so far, with one OPEC source saying Mexico could also contribute. In contrast, Kazakhstan plans to boost output in 2017 as it launches the long-delayed Kashagan project.
Sources at eight refiners in Asia told Reuters they had been notified by Saudi Aramco that in January it was set to supply full crude amounts.
Of those eight, three refiners said they would load extra volumes they had requested.

Source: Arab News