Aramco to Supply Some Asian Refineries with Contracted Crude

Several informed sources revealed to Reuters on Monday that the Saudi oil giant Aramco has notified at least five customers in North Asia that they will receive their full contracted crude oil volumes in July, despite its pledge to implement a larger production cut starting next month. Saudi Arabia, the world's largest oil exporter, has committed to reducing production to nine million barrels per day in July, down from about ten million barrels per day in May. Three trading sources told Reuters that some state-owned Chinese refineries requested a reduction in supplies for July, estimating that the supply volume would be about ten million barrels lower than in June. However, it is likely that the total imports of Saudi crude oil by China will remain at roughly the same level as in June, as other Chinese refineries have requested an increase in supply for July compared to the lower levels in June.