Saudi Arabia has cut crude oil allocations to oil majors for
September by 4-7 per cent from August, oil industry sources said
Opec members, including Saudi but excluding Iraq which is not party to
quota allocations due to its UN oil-for-food program, agreed to slice
output by one million barrels per day or four per cent from September
The sources said Saudi September allocations to some European oil
majors with worldwide systems now stood some 28-37 per cent below
their full contract volumes after a run of OPEC supply cuts this year.
One lifter said the latest cuts were deeper than his expectations for
a five per cent reduction. Another said a four per cent drop in
allocations versus August fell well within expectations.
Some non-major European customers had their allocations sliced by
between 5-6 per cent compared with August. Saudi Arabia also deepened
cuts to customers in Japan and South Korea, taking volumes to 16-17
per cent below standard contract volumes.