Saudi Aramco raises November pricing for Arab Light crude for Asian buyers
Date
10/7/2024 5:35:25 AM
(MENAFN) Saudi Aramco has announced an increase in its November pricing for Arab Light crude oil intended for Asian buyers. According to a recent price list, the state-owned oil giant raised the official selling price of Arab Light crude by 90 cents, resulting in a new price of USD2.20 per barrel above the regional benchmark. This adjustment comes amid rising global oil prices, fueled by escalating tensions in the Middle East. On Thursday, crude prices surged nearly 5 percent, although analysts have cautioned that slowing demand in various countries and an abundant supply both within and outside OPEC may eventually place a cap on these price increases.
In a contrasting move, Saudi Aramco has reduced the prices of all crude oil grades for Europe and the United States. Specifically, the Arab Light price differential for buyers in Western Europe has been established at USD0.45 above the ICE Brent benchmark, as indicated in an emailed statement from Aramco. This price hike for Arab Light aligns with market forecasts of approximately 45 cents, pushing the medium sour crude price to its highest level this year. Furthermore, Saudi Arabia has confirmed it will sustain its voluntary output reduction of 1 million barrels per day through November and into December 2023.
In addition to the adjustments for Arab Light crude, Saudi Aramco has also raised the price of Extra Light crude for Asia by 50 cents, bringing it to USD3.35 a barrel above Oman/Dubai quotes. This increase reflects the current upward trend in prices for light sour grades in the spot market. Meanwhile, the official selling prices (OSPs) for Arab Medium and Arab Heavy grades have remained unchanged, indicating a more stable pricing approach for these particular products.
Overall, these pricing changes underscore the dynamic nature of the global oil market, as geopolitical factors and supply-demand dynamics continue to influence crude oil prices. With Saudi Arabia's commitment to manage production levels strategically, the market will be closely monitored for further developments as the year progresses.
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