SINGAPORE/DUBAI: Gulf oil producer Oman has notified customers that it will reduce its crude term allocation volumes by 5 percent in March, industry and trading sources with knowledge of the cuts said on Friday.
The notification only made reference to a cut in volumes in March and did not state if the reductions would continue thereafter, a trading source who received the notice said.
An industry source based in Oman said all customers and lifters had been notified that March volumes would be reduced.
The source said the reduction would continue beyond March, with customers being informed on a monthly basis about how much crude would be available.
The non-OPEC producer told customers on Dec. 13 it would reduce allocations by 45,000 barrels per day in line with an agreement between OPEC and rival producers to curb supplies and ease a glut after more than two years of oil low prices.
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