19-12-2016

Saudi Aramco tells Asian refiners of possible oil supply restrictions from January

saudi-aramco

Saudi Aramco told Asian refiners it will suspend a supply flexibility clause – known as operational/lifting tolerance – from January until further notice – sources.

* Aramco tells customers the move is in line with the Saudi government’s decision to reduce output as part of OPEC supply cuts.

* Operational/lifting tolerance usually allows customers to request 5-10 percent more crude than the volumes allocated by Aramco in case they need more oil.

* Last week, Saudi Aramco told its U.S. and European customers it will reduce supply from January.

* Reduction of supply to Asia is expected to be smaller than to the United States or Europe.

Source: Reuters 

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