• 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
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days Does Toyota Know Something That We Don’t?
  • 14 hours America should go after China but it should be done in a wise way.
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 10 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 10 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 5 hours How Far Have We Really Gotten With Alternative Energy
  • 9 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 11 days United States LNG Exports Reach Third Place
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
U.S. Oil Drilling Sees 6-Rig Gain

U.S. Oil Drilling Sees 6-Rig Gain

The total number of active…

Saudi Arabia Cuts Price Of Oil To Asia

Saudi Arabia has cut the official selling price (OSP) for its Arab Light crude oil to Asia, sources said on Thursday.

That makes the Arab Light grade price a premium of $2.55 per barrel compared to the Oman/Dubai average. The cut, to go into effect next month, represents a $0.25 per barrel cut month over month. Saudi Arabia’s June OSP for the United States $6.25 per barrel premium vs ASCI, with prices to NW Europe set at a $2.10 per barrel premium to ICE Brent.

The move shows an expected weakness in Asian demand for Middle Eastern crude oil.

Saudi Arabia’s crude oil price moves are a closely watched element in the oil markets and are generally viewed as a trendsetter when it comes to crude oil pricing. Saudi Aramco—The Kingdom’s state-run oil company—typically sets its crude oil prices near the beginning of each month for the following month, taking into consideration customer recommendations and oil value. For Saudi Arabia, it must compete with both India’s and China’s eagerness to snap up cheap Russian crude oil. Asia has also been hit with falling refining margins, reaching a six-month low last week—not exactly an incentive for Asia to ramp up Middle Eastern crude oil imports. Higher crude oil prices coupled with lower refining margins could prompt Asia to slow imports of ME crude.

The Middle Eastern nation is part of the OPEC+ alliance that moved to cut another 1.6 million barrels per day of crude oil production off their quotas in what was a shock to the market. Prices were sent soaring at the announcement, although all gains made at the time have since been erased on demand fears courtesy of Fed tightening and disappointing demand data coming out of Asia’s industry.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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