07:38 GMT +322 January 2018
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    Workers rest at Ras Tannura's oil production plant near Dammam in Saudi Arabia's eastern province

    Riyadh to Decrease Oil Exports to Asia Next Year

    © AFP 2018/ BILAL QABALAN
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    Saudi Arabian Aramco plans to reduce its January crude oil shipments to Asia in an effort to rebalance the international oil market.

    The supply of oil to the United States and Europe will remain steady while exports to Asia will be cut by more than 100,000 barrels per day.

    "This is in line with our continued demonstration of keeping to, and in fact, exceeding, our commitments under the declaration of cooperation," a Saudi energy ministry spokesman said, as quoted by AFP in reference to a deal made by producers to cut production by 1.8 million bpd.

    The ministry further said that for January 2018, Saudi Aramco would keep supplies steady to all regions at 2017 lows.

    “Aramco will maintain its overall supply levels next month at their recent low levels,” the ministry added.

    The agreement was extended until the end of 2018 in an effort to curb the excess of supply (glut) from the market, which resulted in oil prices crashing.

    About 24 producing countries, including all 14 members of the Organization of the Petroleum Exporting Countries and non-OPEC Russia, are signatories to the deal.

    In 2016, the OPEC countries reached an accord to decrease daily oil production during the first half of 2017 to improve global oil prices. 

    The agreement was also agreed upon by 11 non-OPEC states. In late May, the parties to the agreement decided to extend the deal until the end of March 2018.

    According to reports, Saudi Arabia plans to maintain its crude oil shipments in January at 6.9 million barrels per day.

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    prices, supply, production, oil, OPEC, Saudi Arabia
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