October 2, 2017 / 8:28 AM / 9 months ago

PREVIEW-Saudi Arabia may keep Nov Arab Light crude price to Asia little changed

    SINGAPORE, Oct 2 (Reuters) - Top oil exporter Saudi Arabia
is expected to keep the price for its Arab Light crude for
loading to Asia in November little changed despite stronger
benchmark prices for Middle East oil, trade sources said on
    The producer could keep the official selling price (OSP) for
the flagship grade unchanged or raise it by up to 10 cents a
barrel, four refining and trade sources said in a Reuters
    The Saudis may raise prices to reflect a stronger Middle
East crude market as the backwardation between the first-month
cash Dubai price, a Middle East crude benchmark, and third-month
cash Dubai widened by 25 cents in September from a month ago,
one of the sources said. Spot prices are higher than those in
future months in a backwardated market, which typically
indicates stronger demand.
    Still, other sources expect Saudi Arabia may take into
account stronger prices for Oman, another Middle East benchmark
crude, during the last week of trading in September.
    Saudi crude OSPs are priced against the average of Platts
Oman and Dubai price quotes each month.
    Saudi Arabia's OSPs are usually released around the fifth of
each month and set the trend for the Iranian, Kuwaiti and Iraqi
prices, affecting more than 12 million barrels per day of crude
bound for Asia.
    State oil giant Saudi Aramco sets its crude prices based on
recommendations from customers and after calculating the change
in the value of its oil over the past month, based on yields and
product prices.
    Saudi Aramco officials as a matter of policy do not comment
on the kingdom's monthly OSPs.    

 (Reporting by Florence Tan; Editing by Christian Schmollinger)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below