Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on July 6, 2020

Bookmark and Share

Saudis Raise Oil Pricing to US and Asia

Consumption

Saudi Arabia raised pricing for August oil shipments to Asia, the U.S. and northern Europe amid signs that energy demand is continuing to recover from its coronavirus-triggered collapse.

The move comes as the world’s biggest crude exporter pushes other major producers to join it in cutting supply to re-balance the market.

State producer Saudi Aramco lifted the official selling price for flagship Arab Light crude to customers in Asia, its biggest market, for a third-straight month, though by less than traders expected. The grade will sell in Asia at $1.20 a barrel above the Middle East benchmark, compared with a $0.20 premium for July, the company said in a statement. Traders and refiners, who are struggling to deal with low margins, expected the premium to climb to $1.45, according to a Bloomberg survey.

Aramco increased all its grades to Asia by $1 a barrel for August. It raised U.S. pricing by between $0.20 and $0.40, with the Light grade hiked by $0.30 to a premium of $1.65. Prices for most grades sold to northwestern European customers — the main hub for which is Rotterdam — were also increased. The only region to see cuts was the Mediterranean, where Aramco reduced prices by as much as $1 a barrel.

Saudi Arabia and Russia have led the OPEC+ cartel’s push since last April to reduce crude production and drain stockpiles. The group agreed in June to extend cuts totaling nearly 10 million barrels a day — roughly 10% of world supply before the pandemic hit — for a third month until the end of July. They plan to scale them back after that.

August OSPs to Asia Change Premium
Arab Super Light +$1/bbl $2.65/bbl
Arab Extra Light +$1 $1.20
Arab Light +$1 $1.20
Arab Medium +$1 $1.20
Arab Heavy +$1 $0.90

OPEC+ is “on the right track” but still has “a long way to go” before re-balancing oil markets, Saudi Energy Minister Prince Abdulaziz bin Salman said in mid-June. The Saudis slashed their crude shipments in June to a multi-year low, according to Bloomberg tanker tracking.

Brent crude has more than doubled since OPEC+’s April agreement to around $43 a barrel. The global benchmark is still down 34% this year.

RIGZONE



3 Comments on "Saudis Raise Oil Pricing to US and Asia"

  1. Richard Guenette on Tue, 7th Jul 2020 5:02 pm 

    Leave the oil in the ground.

  2. Rik on Thu, 9th Jul 2020 4:05 pm 

    Dethrone the Saudi Royal family. Name it Arabia, leave out Saudi.

  3. zero juan on Thu, 9th Jul 2020 4:28 pm 

    More idiot socks from juanPee

    Rik said Dethrone the Saudi Royal family. Name it Arabia, l…

    Rik said The US, European Union nations and Canada should w…

Leave a Reply

Your email address will not be published. Required fields are marked *