Arabia lowers oil prices for the Far East: competition is starting to be felt
Saudi Arabia, the world's leading crude oil exporter, is expected to reduce the price of its flagship product for Asia for the month of October, due to low demand for fuel and increased competition from crude oil from elsewhere. regions, according to a Reuters poll of refiners on Monday.
Saudi Arabia, which sets the price trend for most Middle Eastern oil exporters, usually announces prices for the following month around the 5th of each month and, as a policy, does not comment on price movements . The Kingdom usually sets official selling prices (PSOs) for the following month after the monthly OPEC + meeting. The next meeting of the group is scheduled for 5 September.
Saudi oil destined for Asia for the month of September was set at a record premium compared to the Dubai / Oman benchmark, as the Kingdom raised the price of its flagship product, Arab Light, by 0.50. dollars per barrel, bringing it to a record level of 9.80 dollars per barrel compared to Oman / Dubai.
Saudi Arabia could reduce Arab Light prices for its key market in Asia by an average of $ 4.50 a barrel for October cargoes, according to five refining sources polled by Reuters on Monday. Refiners expect the October price of Arab Light to be between $ 3.85 and $ 6.30 per barrel compared to Oman / Dubai.
Expectations of much lower premiums than Middle Eastern benchmarks are due to two reasons: The first is the fear that demand is not strong due to the slowdown in the economy. The other is the reduction in the spread between Dubai-related cargoes and Brent-related cargoes, which curbed the demand for cargoes linked to the Dubai benchmark, from which Middle Eastern crude oils are priced for direct cargoes to Asia.
Additionally, demand for cheaper crude oils from West Africa and the United States may have eased the perceived tightness of the Asian crude oil market, a source of refining told Reuters.
Another source said some of the Saudi crude originally sent west is now returning to Asia due to low European demand.
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The article Arabia lowers oil prices for the Far East: the competition is starting to be felt comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/larabia-abbassa-i-prezzi-del-petrolio-per-lestremo-oriente-la-concorrenza-inizia-a-farsi-sentire/ on Mon, 29 Aug 2022 17:05:51 +0000.