Source : Financial Express 10 May 2017
Oil futures rose in Asian trading on Wednesday after Reuters reported that Saudi Arabia would cut supplies to the region as OPEC battles against rising U.S. production that is threatening to derail its attempts to end a sustained global glut in crude. State-owned Saudi Aramco will reduce oil supplies to Asian customers by about 7 million barrels in June, a source told Reuters, as part of OPEC’s agreement to reduce production and as it trims exports to meet rising domestic demand for power during the summer.
Seven million barrels is roughly two days worth of oil imports into Japan, the world’s fourth biggest importer. Aramco had previously been maintaining supplies to its important Asian customers. Global benchmark Brent futures were up 25 cents, or 0.5 percent, at $48.98 a barrel at 0028 GMT. On Tuesday they fell 1.2 percent.