On Monday, several sources familiar with the matters informed that Saudi Arabia’s state-run energy firm Saudi Aramco will cut its medium and heavy crude grade supply to at least six Asian buyers in August.
The Arab Heavy crude supplies for next month will be curbed by 10% of the original volumes. The Arab Medium crude will also be reduced, said the sources. This will mark the fourth straight months of the cuts, with previous supply cuts to Asia were also focusing on those crude grades.
Those buyers, among them, are based in China, Japan, South Korea, Taiwan, and India, have been informed about the change this weekend. They are able to switch the supply to lighter grades.
An official at India's Bharat Petroleum Corp. Ltd. (BPCL) commented that Aramco has cut supplies of medium and given them more of extra light and light crudes.
Saudi Arabia has to comply with the extended oil production cuts pact from the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+).
