• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours Shale Oil Fiasco
  • 2 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 4 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 20 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 2 hours Might be Time for NG Producers to Find New Career
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 22 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 1 day Wind Turbine Blades Not Recyclable
  • 1 day Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 3 hours US Shale: Technology
  • 5 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 day Denmark gets 47% of its electricity from wind in 2019
Alt Text

The “Twin Threats” Facing Big Oil

According to a new report…

Alt Text

Oil Is The Only Way Back Up For Venezuela

Venezuela’s economic and humanitarian crisis…

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

Saudis Cut Light Crude Prices To Asia To Keep Market Share

Faced with a persisting oversupply and trying to keep its market share amid production cuts intact, Saudi Arabia has unexpectedly lowered the April price for the light crude it sells to Asia.

According to trade sources who spoke to Reuters, Saudi Arabia’s official selling price (OSP) for Arab Light was set for April at the low end of the range expected by a Reuters survey. The price for Arab Extra Light was cut by $0.75, which is more than expected.

The Saudis had raised the prices for February and March since the OPEC output deal has strengthened the Middle East oil benchmark Dubai that many Middle East state oil companies use to price their crude grades bound for Asia. Saudi Arabia had raised the prices of all grades it would be shipping in March to Asia, the U.S., Northwest Europe and the Mediterranean countries; prices for Asian buyers increased more than expected.

But now, oversupply of light crude persists, and the Saudis are not ceding their prized Asian markets.

“They are serious about market share now. Many barrels are left [unsold],” an Asian crude buyer who has business dealings with Saudi Aramco told Reuters.

OPEC, and Saudi Arabia of course, is trying to hold onto its market share in Asia after the production cuts resulted in higher Middle Eastern benchmark prices and narrower spreads versus Brent and WTI, which has made light crude shipments to Asia profitable from regions such as the U.S. and northern Europe. Related: Exxon Betting Big On U.S. Shale

“Light crude is under pressure all over the world,” a trader said to Reuters.

As for the Arab Heavy grade, Saudi Arabia kept its April prices unchanged, compared to expectations that it would cut the price. This could be a sign that Arab Heavy supplies could stay tight, traders told Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play