Some traders expect Saudi Aramco will likely to reduce or delay its term LPG cargoes for June-lifting after the country planned to cut oil production to 7.5 million bpd in June, 1 million bpd below its quota under the OPEC+ agreement. Traders estimated the kingdom’s LPG exports in June to range at 410,000 tons to 460,000 tons, compared to around 470,000 tons in May. Saudi Arabia is expected to announce the term nominations around May 20.
Saudi Arabia exported around 810,000 tons of LPG in April, following a move to export more than 10 million bpd of crude oil after the collapse of the previous OPEC+ deal. However, OPEC+ renewed the pact in April and agreed to cut production by 9.7 million bpd for May and June then by 8 million bpd through the end of 2020.
Fellow Middle Eatern exporter Qatar Petroleum last week announced acceptances of June-lifting with two serious deferrals but no cancellations, traders said. Meanwhile, ADNOC announced acceptances of June term this week without any cancellations and only minor delays.
