Tuesday 15 December 2009

Kuwait to price U.S. oil cargoes on ASCI:sources

Kuwait, the world's No. 4 oil exporter, will switch the basis on which it prices oil cargoes bound for the United States to the Argus Sour Crude Index (ASCI), following a similar move by top world exporter Saudi Arabia, sources familiar with the plans told Reuters on Monday.

Kuwait will soon start pricing its U.S. exports against ASCI, a basket of sour crudes produced in the U.S. Gulf of Mexico, the sources said. They did not specify whether the switch would take effect immediately, but said state-run oil company Kuwait Petroleum Corporation sent a letter to U.S. buyers, informing them of the switch.

U.S. refiners have been expecting the switch in Kuwaiti pricing. Aramco, the Saudi state oil company, has already made the switch to ASCI for the basis of its U.S. exports, dropping West Texas Intermediate (WTI) prices published by Platts.

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