Reduction in Saudi volumes will bring production to a two-year low
Saudi output cut creates tight sour crude market
Move triggers flurry of Middle East-China trading with Unipec flooding market with Omani cargoes and rival Petrochina snapping them up
Ice Brent has traded in a narrow range of $73–77/bl since Saudi Arabia announced a 1mn bl/d voluntary output cut in June. While the crude flat price has flattered to deceive, the story remains different in the sour crude market, where differentials have rallied. The Dubai ‘window’—used to assess the tradeable value of spot crude loading from the Middle East—has seen one of its most active trading months ever. The reduction in Saudi volumes will bring production to a two-year low of 9mn bl/d when it takes effect in July. It is scheduled for one month only, but the Kingdom has reserved the option of extending it into August. Having already pledged a 500,000bl/d cut earlier this year, Saudi Ara
Also in this section
28 March 2025
The Central Asian country is positioning itself as a low-carbon leader, but antiquated infrastructure and a dependence on Russia are holding it back
28 March 2025
MCEDD 2025 took place in Madrid this week with record attendance and a wide-ranging programme, reflecting the deepwater sector’s renewed momentum, strategic focus and accelerating technological innovation.
27 March 2025
Awards celebrate global innovation, leadership and achievement across the energy sector’s people, projects, technologies and companies.
26 March 2025
Well-functioning democracies are required for healthier economies and a thriving oil industry
