(Reuters) - Saudi Aramco has started talks with customers globally to discuss possible cuts of 3 percent to 7 percent in February crude loadings to comply with OPEC production cuts, four sources with knowledge of the matter said on Thursday.
The Organization of the Petroleum Exporting Countries (OPEC) agreed in late November to cut production in the first half of 2017 to reduce global oversupply and prop up prices.
Under the deal, Saudi Arabia, the world’s biggest oil exporter, agreed to cut output by 486,000 barrels per day (bpd), or 4.61 percent of its October output of 10.544 million bpd.
“Aramco is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios,” one of the sources said.
“Nothing is confirmed yet,” he said, adding that the scenarios were for 3 percent to 7 percent cuts.
State oil giant Saudi Aramco will be receiving nominations for February crude supplies from its customers and is assessing which grades it could cut, a second source said.
Saudi oil buyers will be notified by Jan. 10 of their respective crude allocations for February.
Reporting by Florence Tan in SINGAPORE, Nidhi Verma in NEW DELHI, Rania El-Gamal in DUBAI and Aizhu Chen in BEIJING; Editing by Christian Schmollinger