Saudi Arabia to cut oil exports to Asia — but not to US or Europe
Riyadh — Saudi Arabia said on Monday it would trim crude exports to Asian customers in January to help accelerate the rebalancing of the international oil market.
An energy ministry spokesman said state-owned Aramco would maintain "steady supplies to the US and Europe while exports to Asia will be reduced by more than 100,000 barrels a day" from December’s production levels.
"This is in line with our continued demonstration of keeping to, and in fact, exceeding, our commitments under the declaration of co-operation," he said, referring to Open and some non-Opec producers’ deal to cut production by 1.8-million barrels a day.
The agreement was extended last month until the end of 2018 in a bid to remove a supply glut from the market that has sent oil prices crashing.
About two dozen producing countries, including all 14 members of the Organisation of the Petroleum Exporting Countries and non-Opec Russia, the world’s top producer, are signatories to the deal.
"We hope that by leading by example, our partners from Opec and non-Opec will do the same in order to keep conformity levels above 100% and accelerate the rebalancing of the market," the spokesman said.
The deal has helped oil prices to rebound from below $30 a barrel at the start of last year to more than $60 a barrel currently.