Iran has reportedly informed some of the Asian buyers of its crude oil that it will significantly reduce their supplies in January.
Two of Iran's crude buyers were notified on Tuesday that their supplies would be cut by 14 percent in January, Reuters quoted sources close to the customers as saying on condition of anonymity.
Each of the two customers purchase up to 60,000 bpd from Iran, Reuters said.
Iran announced in late December that it would cut oil output by 545,000 bpd from January 1 in line with OPEC's December decision to reduce supplies.
A 14 percent cut in Iran's crude sales to Asia would account for a 225,000 bpd reduction, which means the Islamic Republic might also apply the cuts to its customers in Europe.
The latest OPEC decision brings total cuts by the Organization of Petroleum Exporting Countries since September to 4.2 million bpd.
Kuwait also notified at least six Asian refiners that it would cut term crude oil allocations loading from January 22 by 5 percent, sources with refiners said.
Expectations of output cuts from all OPEC members, as well as the Israeli-Hamas conflict and a gas dispute between Russia and the Ukraine, have helped lift oil prices from a low of near $32 a barrel in mid-December to above $50 a barrel.
US crude climbed $1.20 on Tuesday to $50.01 a barrel and London Brent was up $1.76 at $51.38 a barrel.
Iran says it is ready to discuss an increase in its gas supplies to Turkey after Ankara reported a halt in gas deliveries via Ukraine.
Ahmad Nourani, an Iranian embassy official in Ankara, said on Tuesday that Iran could increase its current daily gas exports of 18 million cubic meters to Turkey if Ankara is facing a shortfall.
Russian energy giant Gazprom halted its gas supplies to Ukraine on January 1 as part of a payment dispute, accusing Kiev of siphoning off the gas destined for Europe -- an allegation Ukraine denies.
Russian gas supplies to Turkey from the western pipeline passing through Ukraine have been cut, Turkey's Energy Minister Hilmi Guler told reporters on Tuesday
Gas deliveries to Bulgaria, Greece and Macedonia and Turkey have also been halted.
Iran is the second biggest gas exporter to Turkey, supplying approximately one-third of Turkey's gas.
... Payvand News - 01/06/09 ... --