• 24 hours Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 3 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 10 hours Clean Energy Is Canceling Gas Plants
  • 14 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 16 hours America's Frontline Doctors - Safely Start Living Again!
  • 1 day Biden denies fracking ban
  • 1 day "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 11 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 9 hours Rethinking election outcomes for oil.
  • 10 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 12 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 21 hours Is the coal industry on the way out?
  • 2 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
The End Of Venezuela’s Oil Era

The End Of Venezuela’s Oil Era

Venezuela, once one of the…

Oil Prices Slip Again As COVID Cases Surge

Oil Prices Slip Again As COVID Cases Surge

COVID cases are now surging…

Editorial Dept

Editorial Dept

More Info

Premium Content

Explaining Saudi Arabia’s Oil Price Drop

Usually, when Saudi Arabia issues its official selling prices (OSPs) for the upcoming month, all the Middle Eastern crude exporters take notice and follow suit. Yet what happens if the Saudi national oil company Saudi Aramco delays a decision well beyond the usual timeframe (first 5 days of the preceding month) and then surprises analysts with a price drop? According to its official statement, Saudi Aramco was delaying the release of September OSPs because of the Islamic religious holiday Eid al-Adha which will end this Saturday. On Thursday evening, however, Saudi Arabia surprised the market by issuing its September OSPs. The last time Saudi Aramco took its time to deliberate it flash crashed its April 2020 OSPs by $5-6 per barrel, effectively starting a price war the impacts of which are still being felt all around us.

The oil market has undergone quite a change since April though – the coronavirus is now a firm reality of everyday life and some oil firms have learned to live with; demand in some parts of Asia such as South Korea and Europe has been coming back online, while India, Latin America, and others are struggling to come out of lockdown. Meanwhile, OPEC+ production quotas are less stringent than they were just a couple of months ago. All of that combined has brought producers to a new decision point – they need to confront weak refinery margins as the immense quantities of stored crude are being digested by refiners. Cutting production is no longer…





Leave a comment

Leave a comment




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