SINGAPORE, Mar 11 (Reuters): Saudi Aramco, the world's top crude exporter, plans to reduce Arab Heavy crude supply to term customers in Asia in April due to oilfield maintenance, two sources with knowledge of the matter said on Monday.
The producer will maintain April-loading for other crude grades, one of the sources said.
The reduction comes after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, decided early this month to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter.
Saudi Aramco notified Asian customers of their April crude allocations, days after releasing the official selling prices for the same month.
The producer had unexpectedly raised prices for heavier grades in April, which narrowed the price gap with lighter grades.
It was not immediately clear how much Arab Heavy crude supply will be reduced by and which oilfield will be shut for maintenance. Saudi Aramco did not immediately respond to a request for comment outside office hours.
Meanwhile, global benchmark Brent slipped on Monday, dipping below $82 a barrel, as persistent geopolitical concerns in the Middle East and Russia collide with jitters about softening demand in China.
Brent futures were down 31 cents at $81.77 a barrel as at 1222 GMT, while US West Texas Intermediate (WTI) slipped 34 cents to $77.67. Both benchmarks ended the week lower on bearish Chinese data that signalled weaker demand in the world's leading crude importer.
Brent closed down 1.8%, although the contract has remained above $80 a barrel for just over a month. Meanwhile, WTI ended 2.5% lower.
"The oil complex is in a wait-and-watch mode over the Gaza war and its cascading conflicts, with a question-mark over Israel's military plans, now that the Muslim holy month of Ramadan is starting without a ceasefire and hostage deal," said Vandana Hari of Vanda Insights.
Hopes for a ceasefire appeared to have stalled. No dates have been set for further meetings with mediators in Cairo, a Hamas official told Reuters.
© 2024 - All Rights with The Financial Express
