International•7 Jan ’24 13:49 Author: Remy Kock
Saudi Arabia will cut crude oil prices in February across all markets, including its main market in Asia. Bloomberg reports this. The Saudi state oil company Saudi Aramco anticipates that the weakness in the market will continue and wants to anticipate in time.
Saudi Arabia will cut crude oil prices in February across all markets, including its main market in Asia. Bloomberg reports this. The Saudi state oil company Saudi Aramco anticipates that the weakness in the market will continue and wants to anticipate in time. (ANP/AFP)
For the time being, it is not an alarming picture that expected oil consumption in February and March is lower than during the winter peak. During that period, refineries often close facilities for periodic maintenance. In addition, the strong global supply – including from the United States – increases the chance of a surplus. Earlier this year, a possible surplus forced the OPEC+ group, led by Saudi Arabia and Russia, to extend a production cut.
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Saudi state producer Saudi Aramco cut the price of Arab Light – the benchmark of Saudi oil – in Asia by $2 per barrel to $1.50 per barrel above the benchmark. That’s more than the estimated cut of $1.25 per barrel, according to a Bloomberg survey of refiners and traders. Aramco also cut prices for February deliveries to Northwestern Europe, the Mediterranean and North America.
Global decline
Global oil prices fell in 2023 for the first time since 2020. Until now, the market paid little attention to concerns about the war between Israel and Hamas and a possible escalation of unrest in the Middle East. Attacks by Houthi militants on trading ships crossing the Red Sea have also not yet led to supply disruptions.
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The OPEC+ group’s production cuts are also aimed at preventing the build-up of oil in storage, amid concerns that a sluggish economy will reduce global demand. Saudi Arabia is bearing most of the burden, with voluntary production cuts of 2 million barrels per day through the first quarter and possibly longer.
2024-01-07 12:50:22
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