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- Saudi Arabia slashes its official crude oil sale price for Asian buyers
- The Kingdom has also reduced the prices of most of its oil shipments to the northwestern Mediterranean, Europe and the United States.
Saudi Arabia slashed its official crude oil sale price to Asian buyers following the latest price hike triggered by OPEC + ‘s decision to stick to monthly additions of 400,000 bpd in total rather than increasing production further to cap international prices.
Bloomberg reports that Aramco had cut prices for all grades for its largest market, with Arab Light now selling for $ 0.40 a barrel less, for a total price of $ 1.30 above the Dubai benchmark. .
This is the lowest premium since March.
The Kingdom has also reduced the prices of most of its oil shipments to northwestern Mediterranean Europe and the United States.
Earlier this week, Aramco chief executive Amin Nasser said the global gas crisis had boosted demand for oil by half a million barrels a day. Nasser also said he expects demand for oil to reach 99 million bpd by the end of this year and continue to rise to 100 million bpd in 2022. This appears to have strengthened resolve Aramco to increase its maximum sustained production capacity to 13 million bpd.
“Our maximum sustained capacity of 12 to 13 million bpd … will not reach full capacity at 13 million bpd before 2027,” Nasser, however, quoted by Reuters at an energy conference.
With demand prospects so bright and prices so favorable, it makes sense for the world’s largest oil exporter to give buyers a little break and lower prices. Bloomberg notes that Asia accounts for up to 60% of Aramco’s oil exports.
International crude oil prices, meanwhile, remain high. At the time of writing, Brent crude is trading above $ 82 per barrel, with West Texas Intermediate getting closer to $ 79 per barrel. The trend reflects the switch from gas to oil for some power plants as gas becomes prohibitive.
By Irina Slav for Oil Octobers
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