Saudi Arabia cut oil prices in October, a sign that the world’s largest exporter noticed that fuel demand fluctuated amid a global outbreak of coronavirus.
The kingdom’s state producer, Saudi Aramco, reduced its key Arab Light crude oil by a larger than expected volume for shipments to Asia, its primary market. It also offers discounts to US buyers. Yes I have an oil for that shirt, hoodie, tank top, sweater
Yes I have an oil for that shirt, hoodie, tank top, sweater
Aramco cut Arab Light to Asia to lower prices compared to standard oil prices used by Saudi Arabia for the first time since June. This is the second consecutive month of decline for regional barrels and the Yes I have an oil for that shirt, hoodie, tank top, sweater first in six months that US refiners will be cut. Aramco will also offer discounts on lighter boxes to Northwest Europe and the Mediterranean region.
Oil demand has fallen this year after the Yes I have an oil for that shirt, hoodie, tank top, sweater pandemic forced governments to close economies, airlines canceled skirmishes and workers stayed home. In April, Saudi Arabia, Russia and other OPEC + producers agreed to cut production by nearly 10 million barrels a day, or 10 percent of global supply, to raise prices.
Those cuts and demand recovery in China more than doubled oil prices. But they are still down about 35% this year. Brent crude fell to $ 42.66 a barrel on Friday, suffering the biggest weekly drop in nearly three months as infection rates continue to rise in countries such as the US and India.
“Aramco understands the importance of China for the global oil market,” said Giovanni Staunovo, commodity analyst at UBS Group AG. “The cuts for October could help support stronger imports from China in the Yes I have an oil for that shirt, hoodie, tank top, sweater coming months.”
The company is lowering prices for its Light exports to Asia in October by about $ 1.40 / barrel to 50 cents below regional standards. According to a Bloomberg survey, it is expected to increase the price by $ 1 / barrel down to a 10-cent discount.
“The market will interpret these numbers as fair,” said Mike Muller, Vitol Group’s head of Asia business, during a conference meeting on Sunday hosted by consulting firm Gulf Intelligence. organized in Dubai. “There are some who want more discounts. However, on the whole, people will say, “OK, we’ll accept that.”
Saudi Arabia raised prices from June to August for Asia. However, refiners’ demand declined due to weak profits from converting crude oil into gasoline and other fuels. Asian refiners are also working hard through large stocks that accumulated earlier this year as crude prices fell.
Aramco is lowering prices for the US for the first time since April after Saudi oil exports to the country plunged to decades-low levels in August.
Saudi Arabia often makes price decisions by Other oil engines in the Yes I have an oil for that shirt, hoodie, tank top, sweater Middle East, including Iraq and the United Arab Emirates, are the second and third largest producers in the Organization of Petroleum Exporting Countries.