Saudi Aramco has reduced July-loading crude allocations to some of its Asia-Pacific term buyers by around 20 percent from contractual volumes, although the firm did not make any cuts for a few buyers.
Four Asia-Pacific refiners received cuts of around 20 percent, or slightly smaller than 20 percent, to their Aramco contractual crude volumes for July loading. One of the refiners had nominated below contractual volumes and received what they had requested for, while one of the refiners had nominated above contractual volumes.
Three northeast Asian refiners received full contractual volumes from Aramco for July loading. The three refiners had nominated their normal contractual volumes for July and received what they asked for. It was unclear why some refiners' allocations were not cut. Aramco may have given full allocations to some buyers that have small-term loadings, traders said, although this could not be verified.
The cuts in Aramco's July allocations to Asia-Pacific were within expectations, refiners said, given the 6 June OPEC+ agreement to extend the first phase of its historic two-year production restraint deal to the end of July for all participants except Mexico.
