Summary
[Institutional analysis: Saudi Arabia cuts oil prices for Asian customers more than twice as expected]Saudi Arabia will lower its oil prices in Asia next month, by more than twice the expected rate, indicating that the world’s largest crude oil exporter hopes to attract more buyers import. With the new crown epidemic seriously affecting the recovery of energy demand, Saudi Aramco’s official price increase for three consecutive months has made oil refiners feel uneasy. But because Brent crude oil has soared by 40% this year, OPEC+ believes that the demand is large enough and there may be a shortage by the end of the year, so it can increase production. Increasing production means more crude oil and competing for cautious buyers. If the monthly pricing is too high, Saudi Arabia, which sells all long-term contract crude oil to refiners, may alienate customers. (Golden Ten Data)
Saudi Arabia will lower its oil prices in Asia next month, by more than twice the expected decline, indicating that the world‘s largest crude oil exporter hopes to attract buyers to increase imports. With the new crown epidemic seriously affecting the recovery of energy demand, Saudi Aramco’s official price increase for three consecutive months has made oil refiners feel uneasy. But because Brent crude oil has soared by 40% this year, OPEC+ believes that the demand is large enough and there may be a shortage by the end of the year, so it can increase production. Increasing production means more crude oil and competing for cautious buyers. If the monthly pricing is too high, Saudi Arabia, which sells all long-term contract crude oil to refiners, may alienate customers.
(Source: Golden Ten Data)
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