11/10/2007

Saudi Arabia

According to news reports from our risk management executive... top oil exporter Saudi Arabia has told customers in Asia and Europe it will keep its crude supplies steady for October from September levels, backing expectations that an OPEC meeting on Tuesday will maintain supply curbs.
State oil firm Saudi Aramco informed buyers in monthly notices it would continue to supply Asian lifters with around 10% below their full contractual volume, as it has since April.

It will also keep shipments steady to two European refiners, indicating the world's largest producer is keeping a lid on supply.

I think if they're holding it steady, it probably means they're holding production steady. It's a sign that what the market is expecting from OPEC -- no rise in output -- is going to happen, however Saudi sources signalled OPEC may need to consider an output boost of up to 1 million barrels per day...
More than half of Saudi Arabia's crude heads to Asia. In 2006, the kingdom shipped 51.6% of its crude exports to the region.

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