• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 8 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours Let's Just Block the Sun, Shall We?
  • 2 hours Alberta govt to construct another WCS processing refinery
  • 9 hours Waste-to-Energy Chugging Along
  • 13 hours What will the future hold for nations dependent on high oil prices.
  • 13 hours Venezuela continues to sink in misery
  • 17 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 22 hours UK Power and loss of power stations
  • 8 hours Regular Gas dropped to $2.21 per gallon today
  • 22 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 1 day No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 1 day Zohr Giant Gas Field Increases Production Six-Fold
  • 4 hours Sane Take on the Russia-Ukraine Case
  • 3 hours Sleeping Hydrocarbon Giant
Alt Text

Iran Widens Discount For Crude To Asia

Iran has deepened the discount…

Alt Text

Canadian Crude Price Spike Won’t Last

The price spike in Canadian…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Saudis To Cut Crude Prices To Asia, Again

Abundant supply of light oil in Asia and weaker demand amid some seasonal refinery maintenance will likely prompt Saudi Arabia to cut the official selling price for most of its crude varieties bound for Asia in May.

At the beginning of March, Saudi Arabia 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. At that time, the price for Arab Extra Light was cut by $0.75, which was more than expected.

For the May OSP, according to a Reuters survey of four Asian refiners, Saudi Arabia would likely cut the price of its Arab Light crude by $0.10-$0.40 per barrel from the April OSP.

“I’m seeing price reductions across the board,” one of the refiners surveyed told Reuters.

The Arab Light and Arab Extra Light grades prices are expected to drop more than the medium and heavy grades, since the Asian market is oversupplied mostly with light oil varieties, according to the sources Reuters has polled.

OPEC’s output cuts have made it profitable for oil traders to send crude from as far as the U.S., the North Sea and West Africa to Asia, and this has weakened demand for spot market purchases from Middle Eastern grades.

Another respondent in the Reuters survey for May prices said:

“The spot market is weak. Almost every type of crude is sold at discount against its OSP.”

Saudi Arabia releases OSPs for its grades around the fifth of each month, and as a policy Saudi Aramco does not comment on the monthly prices that Saudi Arabia is setting. The Saudi OSPs generally establish the trend for the prices that Iran, Kuwait, and Iraq charge for Asia-bound crude.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Kr55 on March 31 2017 said:
    This is the most difficult to stomach part of the re-balancing process. It's inevitable when the contango curve is flattened that lots of stored oil will be dumped to the market and create new competition. Saudi's and others need to stomach it, not overreact and do what they can to power through it until all that stored oil runs dry.

Leave a comment




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