RTRS:Saudi keeps oil supply high despite price fall
LONDON (Reuters) - Leading OPEC producer Saudi Arabia has left supply to Asian and European customers unchanged in September despite a heavy fall in oil prices in the past week as global economic growth slows.
Industry sources and traders told Reuters the kingdom would supply the same volumes of crude to its customers in Asia and Europe under term contracts in September. Analysts said it was only a matter of time before Saudi had to cut production as demand for its oil slows.
"We are seeing the same volumes," said a major customer in Europe on condition of anonymity.
Two buyers in Asia said they received unchanged volumes.
"We are in line with our usual request," said a second big European customer. "This was decided when prices were higher so I don't think there will be any consequences in September."
Oil prices at just over $101 for Brent, down from nearly $120 just 10 days ago, are not far from levels where Riyadh may need to act.
Saudi Arabia's break-even budget price is $95 per barrel this year and $85 next year, according to Wall Street bank Merrill Lynch.
OPEC's June output hit its highest since the full onset of the financial crisis in October 2008, according to Reuters estimates , lifted by increased production from Saudi Arabia.