• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 24 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 1 hour Demand for Diesel vs. Oil
  • 10 hours Which type of Hegemony will China follow
  • 1 day Governments that wasted massive windfalls
  • 2 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 1 day Here is Why People Lose Money Trading Natural Gas
  • 1 day We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 17 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day US Shale: Technology
  • 1 day Let’s take a Historical walk around the Rig
  • 3 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
As Gas Prices Crash, Will This Shale Giant Survive?

As Gas Prices Crash, Will This Shale Giant Survive?

Fracking giant Chesapeake may seem…

Saudi Arabia Cuts Oil Pricing To Lure New Buyers

rig

Saudi Arabia is cutting the September official selling prices (OSPs) for all its grades and to all markets except for to the United States, as it aims to entice more buyers as it increases oil supply to offset production and export disruptions elsewhere.

Saudi Arabia’s state-held oil giant Saudi Aramco reduced the prices for next month for all the oil grades it sells to its biggest market, Asia. The pricing for the Saudi flagship grade, Arab Light, was reduced by US$0.70 to US$1.20 a barrel premium over the Dubai/Oman benchmark, used for pricing oil to Asia. The reduction of US$0.70 was deeper by US$0.10 than the median estimate of five traders surveyed by Bloomberg.

The cut in Arab Light prices for September was the second consecutive monthly reduction of the OSP to Asia.

In July, while it was opening the taps, Saudi Arabia also cut its official OSPs for most of its grades to the Asian markets for August, in a sign that it wants to attract more customers now that it has raised production. The OSP for Arab Light for Asia was reduced by US$0.20 to a premium of US$1.90 above the Dubai/Oman benchmark. This was the first cut in Arab Light pricing for Asia in four months and a drop from the highest OSP since July 2014.

Last month, Saudi Arabia was also said to be offering extra oil on top of its contractual volumes to some buyers in Asia, as OPEC’s largest producer boosted oil production to keep markets well-supplied amid disruptions from Venezuela and Libya and the expected reduction of Iranian oil exports.

The Saudis and other Middle Eastern oil exporters compete with North Africa, Russia, Latin America and, in recent months, the United States, for market share in the prized Asian market.

For September, Saudi Arabia also reduced the pricing for all its grades to the Mediterranean and Northwest Europe but raised all prices to the U.S. market.

By Tsvetana Paraskova for Oilprice.com

More Top Reads from Oilprice.com:



Join the discussion | 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