Saudi to keep oil output steady through Aug-trade

LONDON, July 10 (Reuters) Top world exporter Saudi Arabia is likely to keep oil output steady through August as rising supply from the Caspian and Iraq meet a seasonal surge in third quarter demand, industry sources said on Monday.

Big buyers of the kingdom's oil reckon it has yet to reopen the taps since April when Oil Minister Ali al-Naimi said pumping was around 9.1 million bpd.

Riyadh has made no official comment on output since April.

''A pretty steady picture is what we are seeing from the Saudis,'' said a source at a major lifter of Saudi oil.

''There is no additional demand for Saudi crude at the moment. Any additional (global) demand will be covered by incremental crudes coming on line.'' The Saudis cut supply by around 400,000 bpd in the second quarter from the first as a heavy round of global refinery maintenance sapped oil demand.

Demand typically picks up again in the third quarter as refiners look to meet peak summer gasoline consumption and boost heating oil supply ahead of the onset of colder weather.

But as refiners increase runs this year, Saudi Arabia is likely to see little benefit as supply enters the market from elsewhere.

Saudi Arabia notified global oil majors, European refiners and some Asian customers that it would keep supplies mostly steady in August from July, industry sources said on Monday. The Saudis made a small cut in its supply to a Korean refiner.

The world's top exporter may may also be reluctant to increase supply when global crude stocks are at a 20-year high.

After starting up in June, the BP-led billion pipeline from Azerbaijan to the Turkish port of Ceyhan is delivering over 100,000 bpd of Azeri crude to Mediterranean markets in July.

BP expects that volume to rise quickly to 400,000 bpd.

At the same time, Iraq has managed to boost Kirkuk oil exports through its vulnerable northern pipeline to the Turkish port of Ceyhan.

Iraq is aiming to equal its highest level of oil exports since the U.S.-led invasion of 2003 in July at 1.8 million bpd.

That would be a boost of nearly 150,000 bpd from June, and a rise of 300,000 bpd from May.

REUTERS SBA HS2014