Following the extension of the OPEC+ production cut agreement earlier this month, most buyers of Saudi Arabian and Iraqi crude in Asia will receive lower July volumes.
July crude allocations from Iraq and Saudi Arabia are largely settled. Iraq's State Oil Marketing Organization and Saudi Arabia's Aramco have made cuts to the allocated volumes they had requested for July nominations, several refiners in the region reported.
From buyer to buyer, the extent of the allocation cuts varies. Some buyers receive cuts of up to 20 percent to their contractual levels for Saudi crude and up to 50 percent for Iraqi. For July-loading cargoes, traders said Asian buyers had received 30-50 percent cuts to their contractual volumes from SOMO.
