• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 10 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 44 mins Ecoside
  • 7 hours Oil at $40
  • 14 hours Not Just Nuke: Cheap Solar Panels Power Consumer Appliance Boom In North Korea
  • 10 hours Japan’s Deflation Mindset Could Be Contagious
  • 2 hours US Military Spend at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 13 hours Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire
  • 4 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 2 days Guaido and the Conoco Award
  • 9 hours Negative Gas Prices in the Permian
  • 9 hours Gas Flaring
  • 1 day Is Canada hosed?
  • 18 hours The Number Increases: Swiss To Support Belt And Road Push During President's China Trip
Alt Text

BP Pulls Out Of China’s Shale Patch

Poor exploration results have led…

Alt Text

Oil Rallies Despite Large Crude Build

Oil prices continued to rise…

Alt Text

Oil Rebounds On Bullish Inventory Data

Oil prices recovered somewhat on…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

In A Bold Move, Saudis Raise Crude Prices For Asia

Saudi Arabia’s Aramco said yesterday that it will raise the October price of its Arab Light crude oil blend for Asian clients by US$0.55 a barrel to a premium of US$0.30 to the Oman/Dubai average. The increase signals growing demand for Saudi crude and improved refining margins in Asia thanks to the supply disruptions in the Gulf of Mexico that Hurricane Harvey caused.

The average profit margin for a refinery in Singapore, Reuters’ Clyde Russell noted in a recent column, hit US$10.21 a barrel in the wake of Harvey. Aramco is certainly eager to take advantage of the greater demand these margins are motivating. Yet, Russell added, the effects of Harvey will be short-lived, and Asian refiners will need to prepare themselves for a slump in margins. This slump will probably lead to lower demand for Saudi oil, as U.S. production and refining capacity return to normal.

For Northwestern Europe, Aramco reduced its official selling price for Arab Light by US$0.10 to a discount of US$2.15 to ICE Brent crude. The price for Saudi oil for the U.S., however, was also lifted, by US$0.10 for October shipments compared with this month’s price. The new price represents a US$1.30 premium to the Argus Sour Crude Index. Related: Gazprom’s Gas Dominance Grows In Europe

Last month, Aramco announced it would cut its Arab Light shipments to Asia in September by at least 520,000 bpd in line with its commitments under the OPEC oil production cut deal. This will cost it market share, especially if it keeps the cuts over the next months, so grabbing the opportunity to make more money from Asian shipments while refiners enjoy higher margins is the sensible thing to do.

Securing the European market with lower prices is also prudent, but it is a smaller market than Asia, both in terms of demand and demand growth prospects. Asia remains the key market for oil exporters and this market is already looking for alternatives to Middle Eastern oil.

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News