Saudi Arabia is staying in the battle for market share by continuing to pump the type of oil that’s similar to rival U.S. and African supply, while fulfilling its promise to cut output by focusing curbs on other varieties.
The nation plans to idle some fields producing the Arab Medium and Arab Heavy grades to meet its output reduction target, according to people with knowledge of the matter, who asked not to be identified because the information is confidential. That would help the world’s top exporter concentrate more on selling more-profitable crudes such as Arab Light and Extra Light, adding to growing global supplies of similar-quality oil and pitting it against other producers.
A majority of the output cuts that are part of a historic deal between OPEC and some other producers aimed at curbing a global glut are set to come from the Middle East. That’s made the region’s crude pricier relative to other supply priced off U.S. West Texas Intermediate and Europe’s Brent markers. While Saudi Arabia has pledged to pump less oil, it’s also trying not to give up sales in Asia, the world’s biggest market, to competing supply from the Americas and Africa…
Read more : Bloomberg, 05.01.2017