Kuwait Cuts November Oil Price on Reduced Asia Demand

By Yee Kai Pin

Oct. 12 (Bloomberg) -- Kuwait Petroleum Corp. cut its official selling price for November crude oil, reflecting reduced demand from refineries in Asia.

The state-owned company decreased its price to 70 cents a barrel below Persian Gulf benchmark Oman and Dubai grades, from a 55-cent discount for October, according to an official who asked not to be identified because of company policy.

Refiners in Japan and South Korea usually expand output before the winter to produce more kerosene for heating. Nippon Oil Corp., Japan’s largest refiner, said Sept. 30 it plans to produce 10 percent less fuel in October. Cosmo Oil Co. also said it will cut throughput because of weak domestic demand.

Kuwait, a founding member of the Organization of Petroleum Exporting Countries, pumped 2.2 million barrels a day of crude oil last month, according to a Bloomberg News survey. It has the capacity to produce 2.65 million barrels a day.

To contact the reporter on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net