Saudi Aramco to Supply Full Contracted Volumes for October to Asian Buyers

Saudi Arabian Oil Co., the world’s largest state-owned oil company, will supply full contractual volumes of crude to Asia for loading in October, according to refinery officials in Japan and South Korea.

Saudi Aramco, as the company is known, will provide 100 percent of cargoes sold under long-term contracts for an 11th month, according to a survey of refinery officials, all of whom asked to remain unidentified, citing confidentiality agreements with the Middle East producer.

The decision to provide full exports comes after the Organization of Petroleum Exporting Countries agreed in March to leave output quotas unchanged for the fifth time since 2008. OPEC is exceeding its targets by 1.96 million barrels a day, according to a Bloomberg survey of producers, analysts and oil companies who follow the group’s output.

Saudi Arabia lowered its August oil output by 10,000 barrels a day to 8.29 million, the survey showed. That was about 239,000 barrels over its production target of 8.051 million.

Abu Dhabi National Oil Co., the state-run producer in the United Arab Emirates capital, on July 26 said it would raise October shipments of its main export grade, Murban, to buyers with long-term contracts.

The company will trim Murban by 15 percent from contracted amounts compared with a 20 percent reduction in September. Adnoc, as the company is known, will limit shipments of its Lower Zakum grade by 10 percent from 20 percent previously.

Adnoc will cut the amount of Umm Shaif it sells, with a 15 percent reduction from 10 percent. Upper Zakum supplies won’t be slashed at all.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

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