DAJK Group
  • About
  • Project Funding
  • Net Lease Investment
  • Business Finance & Development
  • Consultant & Concierge Services
  • Financial Services & Asset Management
  • Investment & Business Resources
  • Products & Gift Ideas
  • GEP Blog
  • GEP Blog2
  • Business Principles
  • Contact

Our Blog

Saudi Aramco Raises Most Asia Oil Pricing Amid Robust Demand

6/6/2016

0 Comments

 
Saudi Arabia, the world’s largest crude exporter, raised pricing on most oil grades for sale to Asia and the U.S. in July after the nation’s energy minister said demand was robust.
Picture

State-owned Saudi Arabian Oil Co. increased its official selling price for Arab Light crude by 35 cents a barrel to 60 cents more than the regional benchmark for sales to Asia, it said in an e-mailed statement. The company, known as Saudi Aramco, was expected to raise the premium for shipments of Arab Light crude by 40 cents a barrel to 65 cents a barrel more than the benchmark for buyers in Asia, according to the median estimate in a Bloomberg survey of five refiners and traders in the region last week.
 
Oil has rallied about 80 percent since January, making ministers of the Organization of Petroleum Exporting Countries confident that their two-year strategy of trying to win market share is working. OPEC agreed on Thursday to stick to its policy of unfettered production with ministers united in their optimism that oil markets are improving. The July pricing sets Aramco’s light crude grades at the highest levels for Asia since at least September 2014, before OPEC adopted its market share strategy.
​
​“This shows that they’re getting more bullish on demand,” Robin Mills, chief executive officer at consultant Qamar Energy in Dubai and a non-resident fellow at the Brookings Institution in Doha, said Sunday by phone. “India is showing a lot of strength and we’re still seeing very robust demand from China.”
 
Aramco raised pricing on most grades for sale to Asia, leaving only the Extra Light blend unchanged, according to the statement. It raised the premium for Super Light crude by 10 cents, to $4.05 a barrel more than the benchmark. Medium crude will sell at a $1 a barrel discount in July, 30 cents higher than in June, according to the statement.
 
The company also increased pricing for U.S. buyers on all grades except Extra Light. Arab Light crude for U.S. buyers increased by 20 cents a barrel, to 55 cents more than the regional benchmark, according to the statement. Aramco deepened discounts for all grades to buyers in Europe, it said in the statement.
 
Saudi Arabia pumped 10.27 million barrels a day in April, according to data compiled by Bloomberg. It produced a record average of 10.2 million barrels daily last year, it said in its annual review last month.
 
Saudi Arabia’s Energy Minister Khalid Al-Falih, who is also chairman of Saudi Aramco, told reporters in Vienna on Thursday that demand is robust and that non-OPEC supply is declining. Global demand is expected to expand by 1.2 million barrels a day this year after growing 1.5 million barrels a day last year, according to OPEC’s final press statement on Thursday.
 
Middle Eastern producers are competing increasingly with cargoes from Latin America, North Africa and Russia for buyers in Asia, its largest market. Producers in the Persian Gulf region sell mostly under long-term contracts to refiners. Most of the Gulf’s state oil companies price their crude at a premium or discount to a benchmark. For Asia the benchmark is the average of Oman and Dubai oil grades and for North America the marker is the Argus Sour Crude Index.
 
 
Source:  Bloomberg
0 Comments



Leave a Reply.

    Author

    DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

    Archives

    August 2019
    March 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    February 2016
    January 2016
    December 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015

    Categories

    All

      Contact us

    Submit

Services

Project Funding
Business Finance & Development

Net Lease CRE Investment
Concierge Services
​Finance & Asset Management


Company

About
Business Principles
Blog GEP
Blog

Support

Contact
Privacy Policy
Disclaimer
3592 Rosemead Blvd 526  
​Rosemead - California 91770

Los Angeles - USA
T:  +562.301.7231
© COPYRIGHT 2015. ALL RIGHTS RESERVED.
  • About
  • Project Funding
  • Net Lease Investment
  • Business Finance & Development
  • Consultant & Concierge Services
  • Financial Services & Asset Management
  • Investment & Business Resources
  • Products & Gift Ideas
  • GEP Blog
  • GEP Blog2
  • Business Principles
  • Contact