Column: Saudi Arabia crude oil price cut for Asia shows demand concerns | Reuters
Saudi Arabia cut the price of crude oil for October delivery to its customers in Asia by more than the market expected, a sign that demand in the world’s top-importing region remains tepid.
Saudi Aramco, the state-controlled oil giant, said in a statement on Sept. 5 that the official selling price (OSP) for its benchmark Arab Light crude for delivery to Asia would be lowered by $1.30 a barrel to a premium of $1.70 a barrel over the average of Oman and Dubai crude prices.
This was a much deeper price cut than the market expected, with a Reuters survey of refiners in Asia prior to the announcement forecasting a reduction of just 20-40 U.S. cents a barrel in the OSP for Arab Light.
The larger-than-expected cut for Asia wasn’t extended to other regions, with the world’s largest crude exporter keeping OSPs for northwest Europe and the United States unchanged from September.
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