Saudi Arabia to increase crude supplies to Asia

Mumbai: Top oil exporter Saudi Arabia will raise crude sales to major Asian refiners by a tenth in November, more than expected, as it takes the lion''s share of OPEC''s pledge to boost output, industry sources said.

Two Japanese refiners and one in South Korea got word from state oil firm Saudi Aramco would supply the entire volume agreed under the refiners'' annual contract for the first time in a year.

Japanese and other Far East importers see a 100 per cent recovery in shipments of contractual volumes as against the curbs imposed by Saudi Arabia since November last year. They equate it to a roughly 350,000 barrels per day (bpd) increase in exports.

That is more than half of OPEC''s promised 500,000-bpd rise agreed in mid-September as a gesture of assurance to consumer nations.

In October, before OPEC''s supply hike came into effect, the Saudis supplied key Asian customers with about 90 per cent of contracted volumes.

Saudi Aramco will also increase oil exports to China by at least 9 per cent this year to meet rising demand from refiners in the world''s fastest-growing major economy.

Shipments to China may climb to more than 26 million metric tonnes of crude this year, reports quoting officials at Saudi Aramco said. Saudi Arabia''s only crude exporter increased oil exports to China by 7.6 per cent last year to 23.87 million tonnes.

Asia buys about half of the kingdom''s 7 million barrels per day (bpd) of exports. In 2006, Saudi Arabia shipped 51.6 per cent of its crude exports to Asia.

Inventories may, however, come under pressure in November with a 600,000-bpd reduction in Abu Dhabi exports due to offshore oilfield maintenance.