• 3 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 19 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 22 mins WTI @ $75.75, headed for $64 - 67
  • 2 hours EU to Splash Billions on Battery Factories
  • 4 hours US top CEO's are spending their own money on the midterm elections
  • 57 mins The Dirt on Clean Electric Cars
  • 12 hours Petrol versus EV
  • 6 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 46 mins Satellite Moons to Replace Streetlamps?!
  • 4 hours The Balkans Are Coming Apart at the Seams Again
  • 8 hours 10 Incredible Facts about U.S. LNG
  • 1 hour Uber IPO Proposals Value Company at $120 Billion
  • 17 hours E-mopeds
  • 4 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 7 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 day These are the world’s most competitive economies: US No. 1
Alt Text

Goldman Sachs: Oil Unlikely To Reach $100

Goldman Sachs’ chief commodities analyst…

Alt Text

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

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

Saudis Slash Oil Price To Save U.S. Market Share

oil storage

Saudi Aramco has cut the price of Arab Light for the U.S. market further for February despite shipping record-low amounts to its biggest customer. U.S. refiners will receive Arab Light for US$0.10 less a barrel, at just US$0.90 above the benchmark for the Gulf Coast.

This is the second monthly price cut of Saudi oil for the United States. In comparison, last month the Saudis said they would raise the official selling prices (OSPs) for Asian customers for January, on the back of a stronger Dubai benchmark and solid demand, generally in line with traders’ expectations.

Saudi exports to the U.S. have been falling more or less steadily since August 2016, hitting a low of 415,000 bpd in the week to October 27, according to data from the Energy Information Administration. The reduction is part of the Kingdom’s efforts to help reduce global supply to a level that would support higher oil prices for longer.

In early December, also as part of this plan, Energy Minister Khalid al-Falih said that Saudi Arabia would cut its crude oil exports to Asia by more than 100,000 bpd in January compared to December, while keeping its shipments to Europe and the U.S. at the December levels, which were 10 percent lower than what Aramco exported to the U.S. in November. Related: Strong Draw In Crude Inventories Lifts Oil Prices

For December, the Saudis had cut total crude oil exports by 120,000 bpd from just above 7 million bpd in November. Still, overall global crude oil shipments will be kept at 6.9 million bpd in January, an industry source familiar with the Saudi plans told Reuters in December.

Saudi Arabia continues to be the poster boy for the OPEC production cut deal, still shouldering most of the burden to compensate for members lagging behind in their compliance with the cuts, such as Iraq. December was no exception, with daily shipments of oil falling to 6.6 million bpd, according to tanker tracking data cited by Bloomberg. That’s down from 7.18 million bpd in November.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment
  • Giovanni Cordone on January 05 2018 said:
    Thats hilarious, thats a .002% discount. Not even news worthy. I think they are onto the over reporting in the US inventory.
  • Mamdouh G Salameh on January 05 2018 said:
    Saudi Arabia needs an oil price of $70 a barrel or higher for the success of its initial public offering (IPO) of Saudi Aramco sometime in 2018. A successful IPO is at the heart of Saudi Arabia’s Vision 2030 for the diversification of the Saudi economy.

    Towards that end, the Saudis not only have abided very strictly with the production cuts under the OPEC/non-OPEC agreement but they have also gone further by shouldering most of the burden to compensate for members lagging behind in their compliance of the cuts.

    Though the Saudis don’t want their share of the American oil market to collapse hence the recent price reduction to US refiners, their main emphasis nowadays is on the Asia-Pacific region and in particular the Chinese market where Russia’s share has overtaken Saudi Arabia’s since December 2016.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • RK on January 05 2018 said:
    It will be lower than that, possibly 6,300,000 to 6,400,000 see
    https://pbs.twimg.com/media/DSqIk1cX0AAaytx.jpg Maybe Manifa has gone off line
  • petergrt on January 05 2018 said:
    This is beginning to look comical:

    While the Russians and the US are eating their lunch in Asia and Europe, they are trying to save their market share in the US .. . .
  • chistopher on January 05 2018 said:
    @Mamdouh G Salameh Goodevening, you seem to know a lot about the oil market and i noticed your commented on other posts. This is an area i am interested in and i was hoping we could chat more on the future of the market.

Leave a comment




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