Top oil exporter Saudi Arabia is enticing Asian refiners to buy more of the kingdom's crude at the expense of other Middle Eastern producers that are offering more barrels on the spot market, as long-term buyers pare purchases of their grades.
Competitive pricing for Saudi crude next month is eroding demand for alternative spot cargoes of Qatari al-Shaheen and Oman crude in October, traders said on Thursday, adding pressure on price differentials to regional benchmarks. The Saudis have unilaterally raised crude production to near 10 million barrels per day (bpd) over the summer to meet increasing demand in the third quarter and help lower high prices that threaten the global economy.
Members of the Organisation of the Petroleum Exporting Countries so far have voiced little concern about a drop of about $10 in Brent prices this month, while the International Energy Agency on Wednesday warned about slower growth in oil demand if economic growth falters.
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