• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 7 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours Reality catching up with EV forecasts
  • 2 hours Famous author Michael Crichton talks about the "Climate Change Religion" aka Feudalism 2.0
  • 6 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 11 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 11 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
Everybody Loves Oil Again

Everybody Loves Oil Again

The reopening of the Chinese…

Oil Prices Inch Lower After EIA Confirms Crude Build

Oil Prices Inch Lower After EIA Confirms Crude Build

WTI crude prices fell slightly…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudis Cut Light Crude Prices To Asia To Keep Market Share

Faced with a persisting oversupply and trying to keep its market share amid production cuts intact, Saudi Arabia has 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. The price for Arab Extra Light was cut by $0.75, which is more than expected.

The Saudis had raised the prices for February and March since the OPEC output deal has strengthened the Middle East oil benchmark Dubai that many Middle East state oil companies use to price their crude grades bound for Asia. Saudi Arabia had raised the prices of all grades it would be shipping in March to Asia, the U.S., Northwest Europe and the Mediterranean countries; prices for Asian buyers increased more than expected.

ADVERTISEMENT

But now, oversupply of light crude persists, and the Saudis are not ceding their prized Asian markets.

“They are serious about market share now. Many barrels are left [unsold],” an Asian crude buyer who has business dealings with Saudi Aramco told Reuters.

ADVERTISEMENT

OPEC, and Saudi Arabia of course, is trying to hold onto its market share in Asia after the production cuts resulted in higher Middle Eastern benchmark prices and narrower spreads versus Brent and WTI, which has made light crude shipments to Asia profitable from regions such as the U.S. and northern Europe. Related: Exxon Betting Big On U.S. Shale

“Light crude is under pressure all over the world,” a trader said to Reuters.

As for the Arab Heavy grade, Saudi Arabia kept its April prices unchanged, compared to expectations that it would cut the price. This could be a sign that Arab Heavy supplies could stay tight, traders told Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



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