Saudi Arabia, the world's largest oil exporter, may lower crude oil prices for its Asian buyers. Trade sources said the price may be reduced following Middle Eastern benchmark Dubai prices. British news agency Reuters reported this news.
The news of a drop in Saudi oil prices indicates weak demand. This could give more evidence to the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and the OPEC Plus group, which includes Russia, to delay plans to increase crude oil output.
Official selling price (OSP) of the flagship Arab light crude could fall by 30 to 50 cents in December compared to November, six refinery sources said.
Spot premiums in the Middle East fell last month. However, the demand of the Asian market has not increased much. Especially countries like China had low demand.
However, according to some sources, prices for Arab medium and Arab heavy crudes could be relatively small in December, as higher-sulfur fuel oil profits increased.
As an indicator for the region, complex refining margins in Singapore rose to $4 per barrel in the second half of October. Its average price in September was $2.12, the lowest this year.
In addition, OPEC Plus could delay the December oil production increase by a month or more, especially in the context of weak oil demand and supply growth, four sources said.
Official selling prices in Saudi Arabia are usually published on the 5th of every month. This affects oil prices in Iran, Kuwait and Iraq. Asia supplies about 9 million barrels of oil per day.
State oil company Saudi Aramco sets its oil prices based on customer feedback and changes in oil prices over the past month. However, Aramco officials do not comment on their monthly OSP.
