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Kingdom to keep oil supply steady.

Saudi Arabia will largely maintain supply curbs to Asia in June,while deepening curbs to some European customers, industry sources said recently.

The Kingdom and fellow OPEC members have been lowering output since September to boost prices, which have risen to around $ 58 a barrel from a low of $ 32.40 in December.

The rally may lessen the case for OPEC to agree to any further output curbs at a May 28 meeting. Five refiners in Asia were told they will receive steady supplies, while a sixth will get even lower supplies, deepening the reductions beyond 10 percent.

A seventh will get a narrower curb of 7 percent against 11 percent for May. "It is a little deeper than last month," said a trader with one of the Asian refiners who had seen the Saudi notice.

The supply curbs to Asia fell within a wide range of 7 percent to 14 percent,the sources said, compared with between 8 and 14 percent for May.

They also show the same pattern as past months, when Saudi Arabia made different cuts from month to month and from one customer to the next.

Saudi Economic Survey. All rights reserved.

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Publication:Saudi Economic Survey
Article Type:Brief article
Geographic Code:7SAUD
Date:May 17, 2009
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