SINGAPORE: Saudi Aramco has notified at least three North Asian buyers that it will supply full contractual volumes of crude in October, sources with knowledge of the matter said on Monday.

The world’s top oil exporter has slashed its official selling prices (OSPs) to Asian buyers for the month, the first reduction in four months.

The price cut was overall in line with the market expectation as the spot premiums for the Middle Eastern crude dipped since mid-August amid an increasing number of arbitrage cargoes flowing into Asia.

“The market (in Asia) is still holding up. The pressure is now more on Europe instead of Asia,” said a Singapore-based trader. Spot premium for Dubai rebounded from as low as $3.53 a barrel over the Dubai quotes on Aug.23 to stand at an average of $5.6 a barrel in September.

Saudi Arabia lowers Oct Arab Light crude prices to Asia

The major oil producers last week has agreed to lower oil production by 100,000 barrels per day, or 0.1% of global demand, from October to bolster oil prices which have slid on fears of an economic slowdown.