• 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
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 13 days Bankruptcy in the Industry
Sao Paulo's Power Grid Nears Breaking Point

Sao Paulo's Power Grid Nears Breaking Point

Sao Paolo is facing blackouts…

The EU Allows Members to Ban Russian LNG as Imports Climb

The EU Allows Members to Ban Russian LNG as Imports Climb

The European Parliament approved rules…

Could The U.S. Become Lithium Independent?

Could The U.S. Become Lithium Independent?

Despite having some of the…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Saudi Arabia Slashes Crude Price To Asia

FPSO

Saudi Arabia has decided to offer Asian customers the biggest discount in 10 months for its crude, as the kingdom’s refineries struggle with an oversupply thanks to record-high output.

Aramco has priced its September shipments, which it announced on Sunday, to the continent at US$1.10 below the Asian benchmark. This is US$1.30 lower than the price for August shipments and 10 cents lower than estimates made by refiners and commodity traders polled by Bloomberg.

Aramco’s decision represents the latest move in what is shaping up to be a long battle between OPEC’s number-one and its biggest rival at the moment: Iran.

After in June this year Saudi Arabia raised prices for Asian customers on optimism about returning demand, which proved to be short-lived, it is now coming to terms with a reality of not just weak demand but higher competition, as Iran is fast ramping up its exports. The main destination of these exports is Asia.

Yes, Asia is no longer the oil-hungry giant it used to be. There is more than enough local supply and refineries in the region are reducing their operating rates as margins fall. Even China’s teapots, which were seen as the most promising new destination for both Saudi and Iranian crude, are cutting down production to as much as 50%, according to data from Oilchem.net cited by Bloomberg.

The market that Saudi Arabia has been flooding with oil in a bid to maintain its top position in exports is changing, and challenges abound for the Saudis, not just within OPEC but outside it, too. Just last week Pioneer Resources CEO Scott Sheffield said the company has achieved production costs of just US$2 per barrel in some of its shale plays, making this oil very competitive to the Saudi light crude.

By Irina Slav for Oilprice.com

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