Business | Oil & Gas
Saudi to supply full volumes in December
Saudi Arabia will supply full term volumes of crude to its Asian customers for December, unchanged from November, trading sources said yesterday, a move that had been expected as oil prices hover near $100 a barrel.
- Reuters
- Published: 00:23 November 13, 2007
Singapore: Saudi Arabia will supply full term volumes of crude to its Asian customers for December, unchanged from November, trading sources said yesterday, a move that had been expected as oil prices hover near $100 a barrel.
"December is similar to November," a source close to the discussions said.
The allocations for November were the first time in a year that Saudi Aramco supplied full volumes to its lifters.
A trader with a refiner confirmed he received notice of full allocations as he had anticipated. "Yes it was as expected," the source said.
The trader said his company had not requested additional volumes and that Saudi Aramco had not offered to supply extra either.
Three traders with other term lifters said they had yet to receive official notice of their December supplies. One said he expected full volumes.
Opec's promise
The higher volumes allocated for November and December come after Opec pledged a 500,000 barrels per day (bpd) increase in its supplies from November 1 in an attempt to cool prices.
Full allocations for December had been expected as oil prices have surged above $90 over the past two weeks on winter supply worries, a falling US dollar and big options positions betting oil could strike $100.
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