Oil Refiners Reel From Saudi Output Cut Even as Demand Eases
- Riyadh to trim 1m b/d of output amid spring turnaround season
- Covid lockdowns hit demand; unclear if cuts will target Asia
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Several oil refiners in Asia were taken aback by Saudi Arabia’s pledge to curb 1 million barrels a day of supplies from next month even as they planned for maintenance that will trim demand.
Refinery officials with plants across the region expressed surprise over the move ahead of the release of Saudi official prices and cargo allocations for February in the coming days. The decision by the kingdom might have taken into account plant closures in March-April and more virus-led stay-at-home advisories worldwide, they said.