Saudi Aramaco may cut October crude oil prices for Asian Countries by 4-5 percent

Saudi Arabia which is the top exporter of crude oil and could increase the prices of the month of October by 4-5 percent and would hence trade it to the Asian countries further after the increasing pressure on prices of the oil in the region.

For Saudi Aramco’s trademark Arab Light crude, the official selling price (OSP) would be declined by approximately USD 4.50 per barrel in October. To record the high levels of USD 10.95 per barrel after the raise in OSP of September against Oman or Dubai average and USD 9.80 per barrel for Arab Light and would consider as the first price drop in Saudi Arabia in the four months till now.

Saudi Arabia draws inspiration frequently from the market structure of Dubai while setting up the pricing which hence represents the price spread between the first and third months. In the Month of August, the spread diminished by roughly USD 4.26 per barrel.

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The narrowing spread between Dubai and Brent-linked grades dented the demand for the crude oil of the Middle Eastern Countries. As per the market experts, the overall demand for crude oil in Asia is not very strong. The arbitrage cargoes from the countries like West Africa and the United States stream into Asian Countries, with this the tight concerns for the supply are mostly eased.

Asia’s number one oil refiner exporter is Sinopec which predicts a year ago about its second-half refinery to plunge eight percent and the processing annual value for the year 2022 to fall by 6 percent in comparison to 2021. The sluggish demand in Europe resulted in Saudi cargoes shipments flowing back to Asia instead of to the west which would also depress prices, as according to the industry expert.

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The market of crude oil in the region of Asia Pacific region across the countries had a persistent revolution in the value of upstream energy aiding the geopolitical differences and the dynamics of the market during the second quarter of the year 2022.

The prices staggered to historical highs because India re-strategized the scheme to source crude oil. After the authorities of Russia decided to put a markdown on Crude oil, China and India started to constantly procure their cargoes from Russia. The countries like Oceania and Northeast Asia which obtained large volumes of crude oil from Russia have strategised to source the crude oil from other suppliers due to the western sanctions. In the month of June, Asia Pacific Region averaged USD 94.5 per barrel.

As per Procurement Resource, Saudi Arabia is the top exporter of crude oil and could increase the cost valuation of the month of October by 4-5 percent and would hence trade it to the Asian countries further after the increasing pressure on prices of the oil in the region.

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The narrowing spread between Dubai and Brent-linked grades dented the demand for the crude oil of the Middle Eastern Countries. The market of crude oil in the region of Asia Pacific region across the countries had a persistent revolution in the value of upstream energy during the second quarter of the year 2022. In the month of June, Asia Pacific Region averaged USD 94.5 per barrel.