According to a new Bloomberg report, Saudi state energy giant Aramco has raised the price of crude oil sold to the US in November by 20 cents, even as it kept the selling price to Asia, its key market, mostly unchanged, and it lowered prices for Northwest Europe and the Mediterranean region.
The Kingdom lowered the price of its extra-light grade crude by ten cents in Asia, while it raised the medium and heavy grades by 25 cents.
The official selling price for Arab Light to Asia in November was set at a premium of $5.85 per barrel over the regional benchmark. In a poll by ерву agency, traders forecast a raise of 40 cents due to crude demand recovering in one of the biggest markets, and considering the new fuel export quotas issued by China.
Saudi Arabia’s Arab Light OSP to northwest Europe was lowered to $0.90 a barrel against ICE Brent for November, while for the United States it was raised to $6.35 versus ASCI.
Had the Kingdom hiked the price sharply, it would have tightened the market for crude even more, after OPEC’s recent announcement of a 2 million barrel per day cut in the Cartel’s production quotas. Washington had called the cut “shortsighted” when so many countries are “reeling from elevated energy prices.” The White House was also upset, given it could hit consumer pocketbooks, right as they are heading to the polls in November, affecting the US elections.
Global prices for Crude have been declining since June, following the steep rises seen after the beginning of the war in Ukraine, and the imposition of Western sanctions against Russia. However even after the recent declines, the present price of roughly $90 per barrel is still 20% higher than the price at the beginning of the year.
The Daily Financial Trends
