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Saudi Aramco likely to meet full Asia crude demand for August

This shows how Saudi Arabia, the world's biggest oil exporter, aims to retain market share in Asia

Reuters  |  Singapore/New Delhi 

Saudi Aramco likely to meet full Asia crude demand for August

will meet the full August requirements of its customers in India and Southeast as well as four of its North Asian buyers, several sources with knowledge of the matter said on Tuesday.

This shows how Saudi Arabia, the world's biggest oil exporter, aims to retain market share in Asia, the region with the world's strongest demand growth.

has been cutting exports to Europe and the United States (US) to comply with a production cut deal by the Organisation of the Petroleum Exporting Countries (Opec) and some non-countries such as Russia.

For August, "there is no (supply) cut" even for heavier grades such as Arab Medium and Heavy crude to South Asian customers, one of the sources said.

At least one of the North Asian buyers will also receive full supply of that it has requested.

This marks a change from supply cuts to these buyers in the first half this year as cut output of cheaper heavy crude to meet its quota.

is selling in August at the narrowest discount in more than three years.

The cuts drove up prices of Middle East heavy-sour crude, or grades with a high sulphur content, pushing Asian refiners to seek substitutes from Russia, Africa and the US.

Last week, India bought its first ever US crude and its refiners plan to buy more.

Saudi continues to supply slightly more light oil to Japan, one of the sources said.

has increased its market share in Japan, its biggest Asian market, in the first half this year. Japan's imports of Saudi crude between January and June reached 1.3 million barrels per day, 7.7 per cent up on a year ago.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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