Aramco to reduce heavy oil supply

Saudi Aramco plans to meet full contractual crude oil volumes to most Asian buyers in April, but will reduce supply of heavier oil to Chinese and Indian customers due to oilfield maintenance, sources said.

The reduction comes after the Organization of the Petroleum Exporting Countries and their allies, a group known as Opec+, decided early this month to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter.

Aramco, the world's top crude exporter, has notified Asian customers of their April crude allocations, days after releasing the official selling prices for the same month.

Saudi crude allocation for China was estimated at 47.5 million barrels for April -- or 1.58 million barrels per day -- similar to the 47 million barrels allocated in March, sources said.

At least one Chinese buyer had requested to lift more Arab Medium and Arab Heavy crude but its request was not met, said sources.

Meanwhile, Sinopec Oilfield Service (1033) said the net profit grew 23.8 percent to 589 million yuan (HK$640 million) in 2023 from a year earlier, as demand for oilfield services recovered.