Riyadh - Mubasher: Saudi Arabia has reduce crude oil allocations for November by 560,000 barrels per day (pbd), an oil ministry spokesman said on Monday, as reported by Reuters.
This comes as Saudi Arabia is committed to on its pledge to help rein in a global supply glut, in line with the kingdom’s commitment to an OPEC-led supply reduction under which Riyadh is required to slash 486,000 bpd.
“Despite very strong demand from international waterborne customers at more than 7.711 million bpd, they were allocated only 7.150 million bpd,” the spokesman said in a statement.
“Saudi Arabia is once again demonstrating extraordinary leadership in its commitment to rebalancing the market, as we approach the upcoming key meeting of November 30 in Vienna.”
The kingdom is “restraining not only the top-line of production volume but even more importantly the bottom line of exports, which are what ultimately shape global inventories and market balances,” the spokesman added.
It is worth noting that the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and other major non-OPEC producers agreed to cut output by around 1.8 million bpd from 1 January 2017 until March 2018.
OPEC will meet in Vienna on 30 November to decide on its output policy and OPEC officials have said the supply-cutting pact is likely to be extended beyond March, Reuters noted.
Saudi Arabia limited its oil exports in September to below 6.7 million bpd, “despite high customer demand and the partial reduction of domestic summer crude burning requirements”, the spokesman noted.
