Saudi Aramco said to have canceled prompt oil tender to Asia

Saudi Arabian Oil Co. (Saudi Aramco) last week canceled a rare private tender of prompt oil to Asian customers, following the OPEC deal on an output cut last month, Reuters reported on Friday, citing unnamed sources with knowledge of the matter.

In a private tender, selected buyers across Asia last week were given the option of purchasing Arab Light or Arab Heavy crude cargoes loading at Ras Tanura in October in the tender, the sources said.

But Saudi Aramco subsequently canceled the tender after the Organization of Petroleum Exporting Countries (OPEC) reached a deal to cut output on Sept. 28, the sources said.

The state-owned oil producer has excess crude to sell as at least two domestic refineries are scheduled for maintenance in Q4-2016, while Asian buyers may have opted to lift minimum term volumes next month after official monthly prices saw a higher-than-expected increase, the sources added.

Asian customers are cautious following the OPEC agreement on oil output reduction, awaiting the next meeting scheduled for November 30 in Vienna.