June oil supplies from Saudi Arabia to the U.S. and Europe will be halved, and for some buyers export volumes will drop by 60-70%, according to the Bloomberg agency.
Saudi Aramco, a state-owned oil company, has also cut shipments contracted for the first summer month for at least 12 Asian customers. For eight of them, the decline will be 20-30%, and customers in China and India, which could not agree on an increase in volume, suffered most. The kingdom is taking such measures in the face of excess oil in the world market.
A few days ago, the Saudi authorities announced plans to cut production by an additional 1 million barrels per day to its quota in June (to 7.5 million instead of 8.5 million, as stipulated in the OPEC+ agreement). After negotiations with Riyadh colleagues, the Russian Ministry of Energy confirmed that concerns over the overflow of oil storage facilities are easing while demand for black gold continues to grow.