North Asian Buyers to Get Full Saudi Aramco Oil Volumes

Saudi Aramco has notified at least five North Asian buyers that it will supply full contractual volumes of crude oil in October, sources with knowledge of the matter said on Monday, despite extended voluntary output cuts pledged by the Kingdom. The world's top oil exporter last week said it would prolong the 1 million barrels per day (bpd) unilateral cut to the end of the year, driving up benchmark Brent crude above US$90 a barrel for the first time this year.

But Saudi Aramco raised the October official selling price for its Arab Light crude by a less than expected 10 cents from the previous month. Chinese refiners have maintained October total nominated volumes at a similar level to September at about 50 million barrels, three trading sources said. "Despite the modest price hike, Saudi crude remains more expensive than other crude. But as refiners are bound by the term contract, they cannot always ask for lower supply," one source said. Some Chinese refiners have already sought reduced supply from Saudi Aramco this year.