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Asian Refiners to Ask for Less Crude After Saudi Cut Underwhelms

  • Three processors planning to nominate less September supply
  • Lower-than-expected price cut comes as demand weakens in Asia
An employee looks out across oil pipes used for landing and unloading crude and refined oil at the North Pier Terminal, operated by Saudi Aramco, in Ras Tanura, Saudi Arabia.

An employee looks out across oil pipes used for landing and unloading crude and refined oil at the North Pier Terminal, operated by Saudi Aramco, in Ras Tanura, Saudi Arabia.

Photographer: Simon Dawson/Bloomberg

Several Asian refiners struggling with weakening demand will ask Saudi Arabia for less crude next month after the kingdom cut official selling prices by a smaller amount than the processors had been hoping for.

At least three buyers are planning to request less oil from Saudi Aramco for September, according to company officials with knowledge of their crude procurement. Three others expressed disappointment at the size of the cut -- the first reduction in four months -- but will seek normal volumes, said the people who asked not to be identified as the information is private.