State-run Saudi Arabian Oil Company Aramco has cut crude oil allocations for November by slightly above 5 million barrels per day, the Saudi energy ministry said in a statement.
“The company will make an unprecedented cut of 560,000 barrels per day (bpd) in its allocations to customers next month,” it said.
Saudi Aramco, the top oil exporter, plans to ship slightly above 7 million barrels per day (bpd) next month, up from low levels during summer when domestic demand was at its peak.
“The company plans to supply 7.15 million bpd despite very strong demand that exceeds 7.7 million bpd,” it said.
The ministry said that the state is once again demonstrating extraordinary leadership in its commitment to re-balancing the market, as it approaches the upcoming key meeting of November 30 in Vienna, by restraining not only the top-line of production volume, but even more importantly the bottom line of exports, which are what ultimately shape global inventories and market balances.
“The kingdom expects all other participants in the effort to follow suit and to maintain the high levels of overall conformity achieved in August going forward,” the ministry said.
Saudi Aramco is an integrated energy and chemicals company in Saudi Arabia. The oil giant is engaged in the exploration, production, refining, distribution, shipping, and marketing of hydrocarbons; production of petrochemical products; and production and export of crude oil and natural gas liquids. The company was founded in 1933 and is based in Dhahran, Saudi Arabia. It has subsidiaries and affiliates in Saudi Arabia, China, Egypt, Japan, India, the Netherlands, the Republic of Korea, Singapore, the United Kingdom, and the United States.