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Saturday, November 14, 1998

Saudi cuts crude supply to Asia by 5-10% 

Reuters  
Singapore, Nov 13: Saudi Arabia's state-owned oil company Saudi Aramco will cut crude oil supplies to Asia in December by between five and 10 per cent, buyers said on Friday.

Major buyer Japan -- which purchases almost one million barrels per day (bpd) -- has been notified of cuts in that range.

Cuts to South Korea, which buys more than 700,000 bpd, are to be five to six per cent, buyers said. Supplies to Taiwan, which imports about 120,000 bpd, has also been cut by the same range as South Korea, traders said.

Saudi Arabia, the world's biggest crude exporter and leading member of the Organisation of Petroleum Exporting Countries (Opec), sells more than half its exports to Asia.

Aramco did not make any reduction in supply to Japan in November, but cut five per cent in October and 18 per cent in September, largely reflective of overall cuts to Asia.

The cuts are part of Saudi Arabia's effort to support overall cuts of 2.6 million bpd in supply from the Opec production level of 26.987 millionbpd.

Opec is due to meet in Vienna in two weeks to review its cuts which have failed to bolster stubbornly low oil prices languishing around $12 per barrel for the benchmark Brent crude.

The latest cuts to South Korea and Japan were not uniform across the various Saudi Arabian crude grades, traders said.

"Some lifters have had their Arab Extra Light volumes reduced, while others had their Arab Medium and Arab Heavy grades cut and Extra Light maintained," a trader said.

"So it is not the same for all, but it is five to six per cent cut on average," he said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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