Saudi Arabia Seen Widening Asia Oil Discount on Shale Surge - Bloomberg

Saudi Arabia Seen Widening Asia Oil Discount on Shale Surge - Bloomberg:



"Saudi Arabia will probably deepen discounts for crude supplies to Asia after leading OPEC to maintain the group’s output target amid a global battle for market share.



The world’s biggest oil exporter will announce January official selling prices to buyers in Asia this week, after lifting its Arab Light grade from the lowest level in almost six years a month earlier. The largest producer in the Organization of Petroleum Exporting Countries may offer bigger discounts, according to 12 of 13 respondents in a Bloomberg News survey of traders. One participant forecast differentials to be unchanged.



Saudi Arabia is discounting its crude as OPEC’s decision to maintain production quotas prompts speculation the group is prepared to let prices fall to defend its market share against more expensive U.S. shale output. Benchmark futures contracts have collapsed almost 40 percent from a June peak as competition between suppliers increased amid slowing demand."



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