Saudis Raise Oil Pricing to US and Asia



Saudis Raise Oil Pricing to US and Asia
Saudi Arabia raised pricing for August oil shipments to the U.S. and Asia.

(Bloomberg) -- Saudi Arabia raised pricing for August oil shipments to Asia, the U.S. and northern Europe amid signs that energy demand is continuing to recover from its coronavirus-triggered collapse.

The move comes as the world’s biggest crude exporter pushes other major producers to join it in cutting supply to re-balance the market.

State producer Saudi Aramco lifted the official selling price for flagship Arab Light crude to customers in Asia, its biggest market, for a third-straight month, though by less than traders expected. The grade will sell in Asia at $1.20 a barrel above the Middle East benchmark, compared with a $0.20 premium for July, the company said in a statement. Traders and refiners, who are struggling to deal with low margins, expected the premium to climb to $1.45, according to a Bloomberg survey.

Aramco increased all its grades to Asia by $1 a barrel for August. It raised U.S. pricing by between $0.20 and $0.40, with the Light grade hiked by $0.30 to a premium of $1.65. Prices for most grades sold to northwestern European customers -- the main hub for which is Rotterdam -- were also increased. The only region to see cuts was the Mediterranean, where Aramco reduced prices by as much as $1 a barrel.

Saudi Arabia and Russia have led the OPEC+ cartel’s push since last April to reduce crude production and drain stockpiles. The group agreed in June to extend cuts totaling nearly 10 million barrels a day -- roughly 10% of world supply before the pandemic hit -- for a third month until the end of July. They plan to scale them back after that.

August OSPs to Asia

Change

Premium

Arab Super Light

+$1/bbl

$2.65/bbl

Arab Extra Light

+$1

$1.20


12

View Full Article

WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


700K Industry Pros can’t be wrong.   700K Industry Pros can’t be wrong.  
X