(Bloomberg) -- Some key buyers of Saudi Arabia’s crude in Asia and Europe are seeking reduced volumes for next month after the kingdom hiked official prices and extended output cuts.

At least four term-supply customers want to take less August-shipped oil, according to traders with knowledge of the matter. If buyers are then allocated smaller volumes, they may turn to the spot market for replacement supply, potentially strengthening the physical market, they said.

Global benchmark Brent is on course for a back-to-back weekly gain following the moves by Saudi Arabia, as well as a pledge by fellow OPEC+ member Russia to trim its exports in August. The decisions are already being reflected in an array of market indicators, with August-September Dubai swaps rallying on the possibility that the Middle Eastern physical spot market will tighten. 

Among other signals, both Oman and Murban futures rallied against the Middle Eastern Dubai benchmark on Thursday. And in Europe, Norway’s Johan Sverdrup — a medium-sour grade that’s an alternative to Saudi barrels — was bid at a record price on a window run by S&P Global Commodity Insights.

Nominations from customers for term supplies of Saudi barrels are typically due the day after official selling prices are issued, and the buyers are subsequently notified of their allocated volumes around the 10th of each month.

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