Saudis Said Planning to Meet All Orders From Ex-Iran Oil Buyers

(Bloomberg) -- Saudi Arabia plans to meet all the requests for oil purchases it has received for June, notably from countries that had to stop buying Iranian crude because of the recent U.S. sanctions.

The world’s biggest oil exporter has received moderate requests from customers for shipments next month, including from former buyers of Iran’s oil, according to a Persian Gulf person familiar with Saudi plans, who asked not to be identified because the matter is confidential.

Saudi oil production for June is expected to remain below the quota set for the kingdom under an agreement by OPEC and allies limiting output until the end of next month, the person said. Saudi Arabia, which pumped about 9.8 million barrels a day in March and April, has an OPEC quota of 10.311 million barrels.

The kingdom will continue to export less than 7 million barrels a day in June, the person said.

OPEC+, as the group of producers is known, will respond to any actual shortage by increasing supply to the market once it materializes, the person said. Saudi Energy Minister Khalid Al-Falih said last month that he sees no need to take immediate action in the crude market, signaling a cautious response to the U.S. decision to tighten sanctions on Iran.

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