Leading oil exporter Saudi Arabia may lower the pricing of the crude grades it supplies to Asia for a second month in August, following Dubai's decline as a benchmark for the Middle East, according to trade sources.
Around 80% of Saudi Arabia's oil exports go to Asia, thus the prospective price cut for this market highlights the strain on OPEC members as non-OPEC production rises and the world economy encounters challenges.
According to four sources at Asian refineries surveyed by Reuters, the official selling price (OSP) for flagship Arab Light oil exported to Asia in August may drop by 60 to 80 cents per barrel from July, perhaps to the lowest since April.
In response to improved supply from Mexico and Canada, the respondents anticipate slightly larger price reductions for heavier grades—Arab Medium and Arab Heavy—than for Arab Light.
In July, refiners in China decreased their imports from Saudi Arabia for the third consecutive month due to comparatively higher pricing for Saudi oil.
The anticipated price reductions for August are anticipated to follow an 85-cent narrowing of Dubai's monthly pricing spreads from May, an indication of constrained supply relaxing. A greater immediate price than one in a future month is referred to as backwardation.
Peak summer demand in the northern hemisphere and OPEC+ cutbacks have supported global oil futures. This quarter, a supply shortfall is anticipated, however experts anticipate increased supply from non-OPEC producers in the Americas.
Murray Auchincloss, the company's new CEO, has made the decision to reduce funding for large-scale, low-carbon projects, especially offshore wind farms.
According to LSEG statistics, the average margin at a sophisticated refinery in Singapore—the leading indicator for refiners in Asia—stabilized at $3.62 per barrel over the course of the last 15 days after declining for the previous two months.
Around the fifth of every month, Saudi Arabia releases its oil price plans (OSPs), which influence the pricing of crude oil that is going for Iran, Kuwait, and Iraq. Approximately 9 million barrels per day (bpd) of this oil are destined for Asia.
The state-owned energy behemoth Saudi Aramco determines its crude pricing by looking at yields and product prices, as well as client suggestions and the amount its oil has changed in value over the previous month.
Officials from Saudi Aramco do not often discuss the kingdom's monthly OSPs.
(Source:www.investing.com)
Around 80% of Saudi Arabia's oil exports go to Asia, thus the prospective price cut for this market highlights the strain on OPEC members as non-OPEC production rises and the world economy encounters challenges.
According to four sources at Asian refineries surveyed by Reuters, the official selling price (OSP) for flagship Arab Light oil exported to Asia in August may drop by 60 to 80 cents per barrel from July, perhaps to the lowest since April.
In response to improved supply from Mexico and Canada, the respondents anticipate slightly larger price reductions for heavier grades—Arab Medium and Arab Heavy—than for Arab Light.
In July, refiners in China decreased their imports from Saudi Arabia for the third consecutive month due to comparatively higher pricing for Saudi oil.
The anticipated price reductions for August are anticipated to follow an 85-cent narrowing of Dubai's monthly pricing spreads from May, an indication of constrained supply relaxing. A greater immediate price than one in a future month is referred to as backwardation.
Peak summer demand in the northern hemisphere and OPEC+ cutbacks have supported global oil futures. This quarter, a supply shortfall is anticipated, however experts anticipate increased supply from non-OPEC producers in the Americas.
Murray Auchincloss, the company's new CEO, has made the decision to reduce funding for large-scale, low-carbon projects, especially offshore wind farms.
According to LSEG statistics, the average margin at a sophisticated refinery in Singapore—the leading indicator for refiners in Asia—stabilized at $3.62 per barrel over the course of the last 15 days after declining for the previous two months.
Around the fifth of every month, Saudi Arabia releases its oil price plans (OSPs), which influence the pricing of crude oil that is going for Iran, Kuwait, and Iraq. Approximately 9 million barrels per day (bpd) of this oil are destined for Asia.
The state-owned energy behemoth Saudi Aramco determines its crude pricing by looking at yields and product prices, as well as client suggestions and the amount its oil has changed in value over the previous month.
Officials from Saudi Aramco do not often discuss the kingdom's monthly OSPs.
(Source:www.investing.com)
