FX.co ★ Saudi Aramco to maintain oil deliveries to Asia despite oil cuts

Saudi Aramco will maintain oil deliveries to consumers in Asia despite the recently agreed OPEC+ production cuts, Reuters reported.

According to Saudi Energy Minister Abdulaziz bin Salman, the OPEC+ alliance would cut oil production. The nominal size of the OPEC+ production cut was set at 2 million barrels per day but the actual cuts were agreed at between 1 million barrels and 1.1 million barrels daily.

Most of the reduction will be made by Saudi Arabia, the UAE, and Kuwait. Following the news, Saudi Aramco might raise its export prices. For Asian customers, the price of the flagship Arab Light in November remained at the October level.

Aramco also lowered the crude price for European buyers but raised for it its US customers. The Arab Medium and Arab Heavy prices grew by $0.25 per barrel from October.

As oil-importing nations worry about oil prices, the Aramco chief warned of shrinking global production capacity.