Saudi Aramco Cuts Prices for Mediterranean Customers
February 04 2016 - 08:20AM
Dow Jones News
Saudi Arabian Oil Co., known as Saudi Aramco, has offered
discounts across most crude grades for Mediterranean customers
loading crude oil in March, according to its latest official
selling prices, known as OSPs.
The move comes as Iran sees the Mediterranean as a key market
when it ramps up oil exports to Europe following the lifting of
sanctions. Turkey, Spain and Italy were the main European buyers of
Iranian crude before sanctions were imposed.
Saudi Aramco, the world's largest oil exporter said Thursday
that Mediterranean prices have been discounted across extra light,
light and medium, which decreased by $0.75, $0.30 and $0.20 a
barrel, respectively. The heavy grade increased by $0.60 a
barrel.
Asian prices for its medium grade increased by $0.10 and heavy
by $0.70. Its light grade dropped by $0.20 a barrel, extra light
and super light also fell by $0.40 and $1.60 a barrel,
respectively.
U.S. prices were largely unchanged, with light and heavy steady,
but extra light down by $0.20 a barrel. Medium increased $0.10 a
barrel.
Northwest European prices are less cheap than those offered last
month. Extra light and light were cut by $0.30 and $0.10 a barrel,
respectively, but medium and heavy increased by $0.40 and $0.80 a
barrel, respectively.
Saudi Aramco sets its OSPs relative to regional benchmark crude
oil prices. It sells at different prices in different regions,
mainly to reconcile buyer demand with market fluctuations in those
benchmarks.
The price-setting process is typically a technical move with
little impact on the broader market. But in recent months, given
the steep drop in global crude prices, the settings have been
closely followed by market watchers looking for clues on the
intended direction of Saudi oil policy.
Write to Miriam Malek
miriam.malek@wsj.com<mailto:miriam.malek@wsj.com>
(END) Dow Jones Newswires
February 04, 2016 08:05 ET (13:05 GMT)
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