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
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
