Saudi Arabia is offering extra crude supplies to some of its existing customers, industry sources said on Thursday, probably because it has more available while its own refineries are undergoing maintenance. Saudi Arabia is already pumping oil at the highest rate in decades at 10 million barrels per day (bpd). Sources at two customers of state oil company Saudi Aramco said it had offered additional cargoes under contract terms to already agreed supplement monthly supplies.
"I am seeing them offering extra," said a source at a leading customer of Saudi Arabia, who declined to be identified. Oil prices surged in March to $128 a barrel for Brent blend, the highest since 2008, because of concern about possible supply shortages as Western sanctions target exports from Iran.
Crude was trading just below $119 on Thursday. Saudi Arabia earlier this year identified $100 a barrel as a fair price. Oil Minister Ali al-Naimi said on April 13, with oil around $120, the kingdom was "determined to see a lower price and is working towards that goal." A source at a second buyer of Saudi oil, who had also been offered extra crude, said he did not believe Saudi Arabia had boosted output significantly and was making more oil available because refinery maintenance had cut domestic demand.