Largest Supplier of oil confirms to limit its supply by June which plunges prices

The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have pledged to cut output by almost 1.8 million barrels per day (BPD) during the first half of the year.

So far, however, there have been few signs that global markets are actually tightening as producers shielded their biggest customers, especially in Asia, from the cuts.

But after Brent prices fell back below $50 per barrel last week, analysts said producers felt forced to act.

Saudi Arabia, the world’s biggest oil exporter, has notified several Asian refiners of its first cuts in crude allocations for regional buyers since OPEC’s output reduction took effect in January.

Reuters reported on Tuesday that state-owned Saudi Aramco will reduce oil supplies to Asian customers by about 7 million barrels in June.

In the United States, U.S. crude stockpiles posted their biggest one-week drawdown since December last week as imports dropped sharply, while inventories of refined products also fell.

Crude inventories USOILC=ECI fell 5.2 million barrels in the week to May 5, the U.S. Energy Information Administration said. At 522.5 million barrels, crude stocks were the lowest since February.

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13 Comments Add yours

  1. Aatirah says:

    OPEC’s two largest producers, Saudi Arabia and Iraq, as well as Angola also increased output.

    Like

  2. Aliza Shabbir says:

    informative blog

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  3. Dante says:

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  4. Achor says:

    But after Brent prices fell back below $50 per barrel last week, analysts said producers felt forced to act.

    Like

  5. waqas says:

    nice policy makers

    Like

  6. Pheobs says:

    The producer group’s total output jumped by about 393,500 barrels a day to a total of 32.6 million barrels a day last month

    Like

  7. Manhatten says:

    OPEC and other exporters including Russia have agreed to cut their output by 1.8 million barrels a day from October levels through the first quarter of 2018

    Like

  8. Sairaa says:

    The cuts are aimed at shrinking global stockpiles and boosting oil prices

    Like

  9. Kiara says:

    OPEC expects world oil demand growth to slow down slightly next year

    Like

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  11. Aiza says:

    The cuts are aimed at shrinking global stockpiles and boosting oil prices

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  13. mchael says:

    In the United States, U.S. crude stockpiles posted their biggest one-week drawdown since December last week as imports dropped sharply, while inventories of refined products also fell.

    Like

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