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Anonymous ID: 1530d8 April 13, 2020, 6:27 a.m. No.8777541   🗄️.is đź”—kun   >>7585 >>7734

Aramco Cuts Oil Pricing to Asia Even After OPEC+ Output Deal

 

Saudi Arabia cut most of its crude pricing as the coronavirus hammers oil demand – a clear sign that the kingdom seeks to keep its barrels competitive after producers agreed to coordinate global cuts in output.

 

State-run Saudi Aramco reduced official selling prices for May exports to Asia and the Mediterranean region, according to a price list seen by Bloomberg. The world’s biggest exporter raised pricing to the U.S. and trimmed discounts for some barrels to northwest Europe.

 

Lockdowns and stay-at-home orders are choking demand for fuel amid efforts to stop the pandemic. Led by Saudi Arabia, OPEC+ producers agreed Sunday night to slash oil output by nearly a 10th to help remove excess supply. Yet, even this historic global intervention will only partly offset the estimated loss in crude demand.

 

By decreasing its official selling prices to Asia for a second consecutive month, Aramco is discounting its oil to some of the lowest levels in at least two decades. Asia is Aramco’s biggest market, indicating that the producer is seeking to defend its share of sales in the region even as it trims output. With barrels getting more expensive for buyers in the U.S. and northwestern Europe, Russia’s backyard when it comes to crude sales, Aramco may look to sell less oil there after Presidents Donald Trump and Vladimir Putin helped broker the deal aimed at saving their oil industries. Pricier Saudi crude in the U.S. is “designed to keep Trump happy,” Hansen said.

 

Saudi Arabia, which has been pumping at a record pace this month, took steps to end the oil-price war it unleashed in March by bringing producers and consumers together to make unprecedented supply cuts. The Organization of Petroleum Exporting Countries and partners such as Russia agreed in principle last week to slash production, and they finally settled Sunday on a collective reduction of 9.7 million barrels a day.

 

Saudi Arabia and Russia both pledged to reduce crude production to about 8.5 million barrels a day each, from nominal starting levels of 11 million barrels a day. The Saudi state producer cut its official selling price for flagship Arab Light crude to buyers in Asia by $4.20 a barrel, to a discount of $7.30 versus the Middle East benchmark. That’s deeper than eight traders and refiners in a Bloomberg survey in late March said they expected, predicting a median reduction of about $3.60.

 

The actual reductions in differentials for Asia ranged from $2.95 a barrel to as much as $5.50, depending on the type of crude, following deep cuts for April sales.

https://www.bloomberg.com//news/articles/2020-04-13/aramco-cuts-all-may-oil-pricing-to-asia-raises-pricing-to-u-s

https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart

muh production cuts did not have the desried upon outcome for the Saudi's…..kek

Anonymous ID: 1530d8 April 13, 2020, 7:18 a.m. No.8777831   🗄️.is đź”—kun

OPEC+

 

The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.

It is a permanent, intergovernmental organization.

Currently, the Organization has a total of 14 Member Countries.

OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

It is headquarteredin Vienna, Austria.

OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.