• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day The United States produced more crude oil than any nation, at any time.
  • 7 days e-truck insanity
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 7 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days Bankruptcy in the Industry
Biden Administration's SPR Plans Derailed by Oil Price Surge

Biden Administration's SPR Plans Derailed by Oil Price Surge

The Biden Administration cancels planned…

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Enauta's strategic acquisitions and proposed…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Asian Buyers Rush To Secure North Sea Oil After Saudi Surprise Cut

Tanker

Saudi Arabia’s surprise announcement that it would cut 1 million barrels per day (bpd) beyond its share of OPEC+ cuts in February and March has refiners in Asia scrambling to secure supplies from Europe, with record purchases of North Sea cargoes in one day.   

Saudi Arabia caught the market by surprise earlier this week when it said after the end of the OPEC+ ministerial meeting that it would unilaterally cut 1 million bpd off its crude oil production for the next two months.

While the Saudi move has been supporting oil prices all week, the tightening supplies out of the world’s top oil exporter have apparently upended the plans of Asian oil buyers.

A day later, the Saudis also raised the official selling prices (OSPs) of their oil for Asia for February, lifting the price of the flagship Arab Light grade by $0.70 a barrel to a premium of $1 per barrel against the Middle East benchmark, the Oman/Dubai average.  

The major cut and the higher prices from the Kingdom have prompted Asian refiners to source oil from elsewhere, and North Sea cargoes seem to have benefited from the Saudi production cut.  

According to Reuters, seven crude oil cargoes from the North Sea were bought and sold during a trading window on Thursday alone, and this, according to an oil trading source, was a daily record for North Sea cargoes traded in one day in recent history. Typically, one or two cargoes of 600,000 barrels of crude each are being traded on a normal day in normal circumstances, according to Reuters.

Four of the seven North Sea cargoes on Thursday were acquired by China’s Unipec, the trading arm of the largest oil refiner in Asia, Sinopec, trade sources told Reuters.

According to Bloomberg, crude outside the North Sea is also in demand in Asia, such as the CPC blend of Kazakhstan.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News