Three sources with knowledge of the matter said Saudi Aramco has cut the volume of crude it will supply to at least three buyers in Asia by 10 percent-30 percent for June.
The cuts were made against volumes that had been nominated for loading supplies in June.
A voluntarily deepened oil output cut previously announced by Saudi Arabia by an additional 1 million bpd from June to an output level of 7.492 million bpd. This output cut is the lowest level in almost 20 years.
Saudi Aramco’s announcement followed a deal struck by the OPEC+ to reduce excess supply and support prices by cutting output by an unprecedented 9.7 million bpd in May and June.
As some sellers doubled or even quadrupled their offers from the last trade levels, market sentiment regarding the tightening of Aramco’s crude supplies propped up Asia’s spot market for the Middle East sour crude on Thursday.
Several buyers were looking for cargoes for the Middle East crude. However, sellers were either offering their cargoes at high premiums or holding out, trade sources said.
