Saudi Aramco lowers Asia OSPs for October amid signs of tepid demand

Dubai — Saudi Aramco lowered its October official selling prices for crude supplies to Asia and the US, while raising some prices for grades bound for Northwest Europe and the Mediterranean, the company said in a pricing letter on Sept. 5.

In Asia, the differential for Arab Light was cut by $1.40/b to a discount of 50 cents/b against Oman/Dubai. Prices were expected to be cut for Asia-bound crude by $1-$2/b, market sources told S&P Global Platts in the last week of August, citing signs of tepid demand. Also in Asia, Super Light and Extra Light were reduced by $1.50/b, Arab Medium was lowered by $1.20/b and Heavy was down by 90 cents/b.

In the US, the largest decrease was for Extra Light, which was reduced by 70 cents/ b to a premium of $1.50/b against the ASCI; Light was cut by 60 cents/b while Medium and Heavy grades were both lowered by 50 cents/b.

The OSPS for Northwest Europe saw the Medium grade unchanged from September at a discount of $1.90/b against ICE Brent. Extra Light was decreased by 60 cents/b, Light was cut by 20 cents/b and Heavy grade was raised by 30 cents/b.

For crude bound for the Mediterranean, Aramco raised the OSP for its Heavy grade by 30 cents to a discount of $1.80/b against ICE Brent. Extra Light was reduced by 60 cents/b, Light was lowered by 40 cents/b and Medium was cut by 20 cents/b.

Sidi Kerir OSPs for October were not immediately available.

Unit: $/b