Aramco Says to Cut Feb. Supplies

Saudi Aramco has started talks with customers globally to discuss possible cuts of 3% to 7% in February crude loadings to comply with OPEC production cuts, four sources with knowledge of the matter said on Thursday. The Organization of Petroleum Exporting Countries agreed in late November to cut production in the first half of 2017 to reduce global oversupply and prop up prices, Reuters reported. Under the deal, Saudi Arabia, the world's biggest oil exporter, agreed to cut output by 486,000 barrels per day, or 4.61% 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% to 7% 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.