TEMPO.CO, Jakarta - Saudi Arabia is reported to slash down its crude oil sales to some of their Asian buyers. The export limit, that is aimed at cutting down the global oil supply surplus, will take effect on September 3.
As one of the world’s largest oil suppliers, Saudi Arabia Oil Co. is planning to ship oil supplies to the Asian countries in the volume lower than the original intended order. The cut is predicted to be around one million barrels for the Southeast Asian and South Asian markets.
Saudi Arabia decided to limit its cargo to Asia due to the competition with the United States Oil shale. OPEC’s plan to cut down their oil production from its member countries was also hampered by the growing oil production from Nigeria and Libya.
Saudi Arabia representatives said that they plan to increase pressure towards countries that did not obey to their promise to cut down oil production.
The oil production cap to 86 percent in July affects the global oil prices. Saudi Arabia in July said it will reduce its oil shipment for one million barrels to 6.6 million barrels in total starting from August this year.
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