Lagos — Saudi Arabia’s Aramco plans to cut exports by 700 000 barrels per day starting from next month.
According to a report by Blomberg, the Kingdom intends to keep oil exports below 7 million barrels.
This means less allocations to its customers in a bid to stabilise the market and boost sliding prices.
For North American customers, the kingdom will send about 300,000 barrels a day less than they ordered.
There will also be modest cuts to Asian buyers.
While the kingdom could have produced about 10.3 million barrels a day because demand is much higher, it decided to keep output and exports suppressed.
Global benchmark Brent crude rose as much as 3.2% to $58.01 on Thursday. Prices are still down about 12% over the past week.
More than other countries involved in the OPEC cut agreement, Saudi Arabia, the world’s largest oil exporter, cuts more than required under an agreement.