OPEC drives Saudi supply cuts

The effect of OPEC's deal to reduce crude output starting next month is already being felt in Saudi Arabia, the world's biggest oil market.

OPEC's biggest producer - Saudi Arabia is also the world's biggest crude exporter - is planning to curb the additional crude it offers to Asia customers on top of its regular scheduled supply under long-term contracts, people with knowledge of the matter said.

The cut in such spot cargo offerings in January is part of a strategy to implement the output reduction deal reached in Vienna earlier this week, they said, asking not to be identified because the information is confidential.