LONDON, Oct 11: Leading Opec producer Saudi Arabia has cut November crude oil export allocations to key European customers by a “significant” volume compared to the current month, traders said.

The cutback probably signals tighter compliance by Riyadh with the country’s existing Opec quota, oil market analysts said.

One trader, who asked not to be identified, said cuts in nominations to big European customers by state Saudi Aramco were fairly significant for November, in excess of 30 per cent against benchmark full contract volumes.

In October, Saudi supplied around 29-30 per cent less than its full contract volume.

Most Europeans have been cut, the trader added.

Another agreed that its November allocations were lower than for October but declined to specify a figure.

Industry sources said the Saudi nominations did not signal that any new cut in output was being prepared by Opec.

Leo Drollas of London’s Centre for Global Energy Studies said he believed the cuts reported by European traders marked a tightening of compliance with existing Opec quotas, rather than heralding a new reduction in output by the oil producers’ cartel.

Opec’s last output reduction of one million barrels daily came into effect in September but compliance has been poor. A Reuters survey for the month estimated Saudi at 7.82 million bpd versus a quota of 7.541 million bpd.

Total output for the 10 Opec members with quotas in September was estimated at 24.58 million bpd or 1.3 million bpd in excess of official limits.

The October supply cuts were not universal and two smaller European companies said their allocations were more or less unchanged from October levels.

Earlier, traders in Asia said Saudi Arabia was keeping November supplies to their region roughly in line with those for October, although two Korean buyers received a slightly deeper cutback.

In Asia, Saudi generally cut crude supplies for November by 16-17 per cent from standard term contract volumes, traders said in line with October levels.

However, traders said two Korean buyers received a one to two per cent deeper cutback compared to October, when their cuts were around 15 per cent.

US supply allocations for October were not immediately available but one industry source said companies had been told supplies would not be cut for the month.

On Tuesday a Gulf source told Reuters that momentum was building in Opec for a possible 700,000 to one million barrel per day (bpd) production cut.

Saudi Arabia has some 80 customers worldwide for crude and petroleum products. State Saudi Aramco reviews crude export nominations each month. —Reuters