Saudi Arabia Tells US and European Customers it Will Cut Deliveries in January

Saudi Arabia has told its U.S. and European customers it will reduce oil deliveries from January as Russia signaled that a commitment from non-OPEC producers to join OPEC’s output limits still faced challenges.

Saudi Arabia told the customers about lower supplies in line with the output reduction agreed by the Organization of the Petroleum Exporting Countries last week, according to a Gulf oil industry source familiar with Saudi oil policy.

“We told our customers of the allocations and the compliance with allocations (for the cuts) for Saudi Arabia is 100 percent,” the source said.

He said cuts to Asian refiners would be lower than those to Europe, the United States and to major oil companies.

“We are cutting more in the U.S. because the inventories … are very high,” the source said.

via Reuters

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