Saudi Arabian Oil Co. will provide full contracted supplies to Asian customers in July, according to buyers at five regional refiners who received notification from the producer.
The world’s largest state-owned crude exporter is supplying full volumes as the Organization of Petroleum Exporting Countries prepares to meet in Vienna on June 14. OPEC will maintain its official daily production ceiling at 30 million barrels when its 12 members meet, all 20 traders and analysts surveyed by Bloomberg News said. The group has agreed to cuts at every meeting in the past 10 years that coincided with a price drop of more than 10 percent in the preceding three months, data compiled by Bloomberg News show.
Saudi Aramco, as the company is known, will supply 100 percent of volumes agreed under long-term contracts, said the people at refining companies in Japan, Thailand and South Korea, declining to be identified because they aren’t authorized to speak to the media. July will be the 32nd month in a row that Saudi Arabia has not trimmed exports.
Brent oil has fallen 21 percent from this year’s high on March 13 to $99.47 a barrel in London as of June 8 on mounting concern that Europe’s debt crisis will derail global growth and curb demand for energy.
China imported a net 25.3 million metric tons of crude in May, or 5.98 million barrels a day, up 10 percent from April, customs data showed yesterday. The previous record was 5.87 million barrels a day in February. Purchases cost an average of $120 a barrel, compared with about $123 in April, the data showed.
PV Oil Co., Vietnam’s state-owned oil-marketing company, offered to sell three cargoes of Chim Sao crude for loading in August totaling 900,000 barrels, said two traders who participate in the market, declining to be identified because the information is confidential. Bids are due June 13.
Kuwait set the differential used to determine the official selling price of its oil for shipment to Asia in July at a discount of 15 cents a barrel to the average of Oman and Dubai crude, up from a 60-cent discount for June, state-run Kuwait Petroleum Corp. announced in a faxed statement yesterday.
Iraq’s Basrah Light exported to buyers in Asia next month will sell at a premium of 30 cents a barrel, according to an e-mail yesterday from the oil ministry’s marketing department.
Dubai crude’s backwardation, when prices for prompt supplies are greater than those for future delivery, rose 4 cents. Swaps for July were $1.30 a barrel more than September, according to data from PVM Oil Associates Ltd., a London-based broker.
The Brent-Dubai exchange for swaps, which measures the European marker grade’s premium against the Middle Eastern oil, fell 13 cents for July to $2.92 a barrel, according to data from PVM. The August EFS was down 6 cents at $2.99.
Oman for July delivery rose $3.03 to $98.68 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.
There were four Dubai partial cargoes sold today, according to a survey of traders who monitor the Platts pricing window. Phibro LLC sold the lots to Royal Dutch Shell Plc at $98.60 a barrel.