Saudis Said Willing to Meet All Orders From Ex-Iran Oil Buyers

Catogory : Market Report

Saudi Arabia plans to meet all requests for oil purchases it has received for June, notably from countries that had to stop buying Iranian crude because of recent U.S. sanctions.

The world’s biggest oil exporter has received moderate requests from customers for shipments next month, including from former buyers of Iran’s oil, according to a Persian Gulf person familiar with Saudi plans, who asked not to be identified because the matter is confidential.

Saudi oil production for June is expected to remain below the kingdom’s ceiling under an agreement between the Organization of Petroleum Exporting Countries and its allies limiting output until the end of next month, the person said. Saudi Arabia pumped about 9.8 million barrels a day in March and April and has an OPEC quota of 10.311 million.

The kingdom will continue to export less than 7 million barrels a day in June, the person said.

OPEC+, as the producer coalition is known, will respond to any actual shortage once it materializes by increasing supply, the person said. Saudi Energy Minister Khalid Al-Falih said last month that he sees no need to take immediate action in the oil market, signaling a cautious response to the U.S. decision to tighten sanctions on Iran.