Saudi Arabia To Cut Crude Oil Allocation In September By More Than Its OPEC Pledge: Report

Saudi Arabia will cut crude oil allocation to its customers worldwide in September by at least 520,000 barrels per day, Reuters reported Tuesday, citing unnamed sources familiar with the plans. If realized, that means the globe's top producer will have made good on its pledge to help reduce the supply glut worldwide and then some. State oil giant Saudi Aramco will cut supplies to most buyers in Asia, the leading consuming continent, by up to 10% in September to comply with a producers' deal to cut output, multiple sources told Reuters. That is reportedly the first cut to Asia since the cartel production-reduction pledge. Supplies to Europe and the U.S. will also be reduced, the sources said, according to the report. Total supply from the Organization of Petroleum Exporting Countries, including Saudi Arabia, hit a 2017 high in July. Brent prices traded above $58 in January but have fallen since on production cut pledges, ranging as wide $45 to $52 as those pledged cuts have sometimes been slow to materialize and as competing U.S. shale producers have increased output.