Saudi Arabia cut pricing for March sales of its Light crude grades to Asia, according to Energy Voice. A Saudi state-owned oil company Aramco lowered its official selling price for Arab Light crude to Asia to $1 a barrel, less than the regional benchmark. The company also cut the premium for Arab Extra Light crude to $1.30 a barrel, more than the benchmark and narrowed the discount for March sales of its Medium and Heavy grades to the Asian continent, informed Bloomberg. Buyers in Northwest Europe and the Mediterranean region will see wider discounts for Aramco’s Extra Light and Light grades, while Heavy barrels will cost more in March.
The country’s average production in 2015 of 10.2mb/d accounted for more than 10% of global oil supply, according to the International Energy Agency. Saudi Arabia enhanced output to a record 10.48mb/d in June 2015 and pumped 10.2mb/d in January this year, according to data compiled by Bloomberg.
As benchmark Brent crude dropped 35% last year and additional 6.8% in January, Saudi Aramco’s officials forecast that prices will ascend by the end of this year as demand grows. Aramco’s CEO Amin Nasser added that “the gap between supply and demand has started shrinking.” A 2014 OPEC resolution was led by Saudi Arabia to maintain output accompanied by oversupply in an effort to preserve market share and drive out higher-cost producers.