Kuwait's Oil Company Expected to Cut April Deals by 6 percent

Published March 21st, 2001 - 02:00 GMT

State-owned Kuwait Petroleum Corp KPC is expected to announce cuts in its April nominations by about 6 percent in order to come in line with OPEC's March 17 decision to slash overall output by one million bpd, industry sources said Tuesday.  

BridgeNews quoted KPC sources as saying the company will "take appropriate measures" but did not elaborate further. 

"We expect KPC to announce its allocation cuts by the end of the week,” a source said. "The cuts would be around 6 percent in general, but they don't have to be the same for all clients," he added. 

Kuwait, which pledged an output cut of 80,000 bpd to 1.941 million bpd under OPEC's agreement, sells most of its oil under long-term contracts to clients, mainly in Asia. 

Ten of OPEC's member states agreed on Saturday to curtail the group's output to keep prices from falling under the average of $25 a barrel for OPEC's basket of seven crudes. 

The Saudi Arabian Oil Co. (C.SOI), or Saudi Aramco, has also informed its buyers in Japan and South Korea that it will make an additional 3.3 percent cut to their April-loading term crude volumes, on top of its previous 11.7 percent cut announced last week – Albawaba.com 

© 2001 Al Bawaba (www.albawaba.com)


© 2000 - 2022 Al Bawaba (www.albawaba.com)

You may also like