* Saudi Aramco notifies at least two buyers of cuts in June
* Saudi cuts supplies to meet OPEC output commitments
(Adds second refinery notified of allocation cut)
By Osamu Tsukimori and Jane Chung
TOKYO, May 10 Saudi Arabia, the world's biggest
oil exporter, has notified at least two Asian refiners of its
first cuts in crude allocations for regional buyers since an
OPEC output reduction took effect in January, two refining
sources told Reuters on Wednesday.
State-owned Saudi Aramco has told Asian buyers it is
curtailing supplies for June to meet its commitments for the
output cut, one of the sources at a refiner in South Korea said.
"Saudi is adjusting supplies because it has somewhat
supplied full volumes or even more in the previous months," the
source said, declining to give specific details on the cuts.
The notification of the reductions in June allocations
signals added urgency among members of the Organization of the
Petroleum Exporting Countries as evidence mounts that the output
cut has so far failed to rein in a global glut in crude.
OPEC has previously kept supplies to clients in high-growth
Asian markets steady, while cutting allocations to Europe and
the United States.
Reuters reported on Tuesday that state-owned Saudi Aramco
will reduce oil supplies to Asian customers by about 7 million
barrels in June, as it keeps to the production agreement and
trims exports to meet rising domestic demand for power during
Seven million barrels is roughly two days of oil imports
into Japan, the world's fourth-biggest importer.
Aramco and other producers typically issue monthly notices
to refineries and other buyers with contracted supplies
outlining their intended allocations to each customer. Usually
they keep volumes at previously agreed levels but sometimes will
reduce or increase the supplies depending on market conditions.
The second refining source that received a notice of a cut
had earlier requested that Aramco provide higher supplies than
it was allocated but was told instead it would be cut. After
discussions with Aramco, the company will keep its volumes
unchanged in June, the source said.
A third Asian refiner is getting contracted volumes for
June, steady from the previous month, a separate industry source
A fourth refiner said it had not received any notifications
(Reporting by Osamu Tsukimori; Writing by Aaron Sheldrick;
Editing by Richard Pullin and Christian Schmollinger)