Aramco May Cut Asia-Bound Crude Prices

Aramco May Cut Asia-Bound Crude Prices
Attendees walk by a sign for the Saudi Arabian Oil Co. (Aramco) on display inside the King Abdulaziz Center for World Culture during a tour of the project in Dhahran, Saudi Arabia, on Friday, Nov. 25, 2016. When completed, the project designed for the Saudi Arabian Oil Co. (Aramco) will contain diverse cultural facilities, including an auditorium, cinema, library, exhibition hall, museum and archive. Photographer: Simon Dawson/Bloomberg via Getty Images

Saudi Aramco could decrease the official selling price (OSP) differentials of crude oil bound for Asia in December, traders told S&P Global.

The decrease in Asia’s selling prices is because of Dubai’s weak crude oil structure and product cracks. The Dubai crude market structure is an important component in Saudi OSP calculations.

Traders expect that the OSP differentials for Asia-bound Arab Medium crude would either be stable or decreased by 25 cents per barrel.

“On structure, this month is weaker than last month, that is why we expect lower OSP [differentials for] next month,” a North Asian crude trader said.

Arab Light crude was expected to be lower by 10 cents per barrel to 40 cents per barrel from the $1.70 premium set for November, while Arab Extra Light crude could be cut by up to 80 cents per barrel, traders added.

Dina Elbehiry 642 Posts

Graduated from Faculty of Economics and Political Science- Cairo University.
Having an Economic background and currently working for Egypt Oil & Gas.

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