x Abu Dhabi, UAESaturday 22 July 2017

Saudi complies with Opec oil cuts

Saudi Arabia cuts oil supplies to some major customers with immediate effect, according to industry sources.

A refinery worker controls a valve on an oil pipeline.
A refinery worker controls a valve on an oil pipeline.

Saudi Arabia has cut oil supply to some major customers with immediate effect, industry sources said today, easing doubts about whether the world's top exporter will comply quickly with Opec curbs. The kingdom has told major oil companies that it will restrict the volume they can load this month by limiting operational tolerance, one of the sources familiar with Saudi crude sales said. Another source with a major customer of the state oil firm Saudi Aramco also confirmed that he saw evidence that Riyadh had cut supplies in November. Neither source was able to give an estimate on how much exports had been cut in total. Other Opec members have been more public in applying their cuts, with the United Arab Emirates, Kuwait, Iran and Nigeria telling lifters of immediate cuts last week. The Opec president Chakib Khelil urged Saudi, Opec's most influential member, to make a swift announcement of its supply reduction in order to prevent prices falling further. Oil prices were little changed after news of the curbs, down $1.41 a barrel at $62.50 a barrel, near the 17-month low they struck last week. Prices have more than halved since their record high in July, and a brief rebound in the days following Opec's deal has evaporated on worries about demand. *Reuters