Riyadh, October 11: Saudi Arabia, the world's top oil exporter has decided to cut the crude supplies by 10% to several buyers of China and Japan. The decision of trimming crude supplies by Saudi Arabia was taken to meet its commitment to an OPEC-led supply cut pact.
Notably, Saudi Arabia’s state-owned oil exporter Saudi Aramco has trimmed crude supplies to three Japanese buyers, one in South Korea and some buyers in China. However, Saudi Arabia is to trim crude supplies by at least ten percent. Saudi Arabia has cut exports to Japanese country for the second consecutive month.
On the other side, Saudi Arabia will export 7.1 million barrels of crude daily to the OPEC oil production from next month. Earlier, Saudi Arabia used to export 6.6 million barrels of crude daily to the OPEC oil production. The 7.1 million bpd export level for November is a significant increase from the 6.6 million bpd self-imposed cap in August for Saudi Arabia.
Interestingly, Saudi Arabia, OPEC’s leader and pace-setter in the output cut agreement, pledged to cut 486,000 bpd from its daily output from a reference level of 10.544 million bpd. Therefore, Saudi Arabia outdid itself in a bid to motivate the rest of OPEC’s members to stick to their quotas, at one point announcing the production of below 10 million bpd.