Saudi Arabia's state oil producer Aramco has cut the official selling prices (OSPs) for its crude to Asia and Europe, while leaving them unchanged for the U.S.
Aramco set the official selling price for its Arab light crude to Asia at plus $0.90/bbl versus Oman/Dubai average, down $0.30 from August, a document obtained by Reuters showed.
The OSP cuts were in line with market expectations, tracking falling Middle East benchmarks and weak refining margins, according to a Reuters survey.
Slow demand recovery amid the second wave of COVID-19 infections has depressed spot prices for Middle Eastern crude this month, while Asia's refining margins remained weak.
The company set the Arab Light OSP to Northwestern Europe at a discount of $1.80/bbl over ICE Brent, down $2.50 from August.
It set the crude price to the U.S. at plus $1.65/bbl over ASCI (Argus Sour Crude Index), unchanged from the previous month.
Energy scholar Robert Bryce offers an unabashed view of the shale revolution, climate change and the future of energy. Spoiler alert: don’t expect oil and gas to disappear anytime soon.
The Scoop and Stack plays are still in the money but only with improved well spacing and effective management of frac-driven interactions.
Leasing hot spots, improved drilling metrics and more reveal some silver lining in the cloud hanging over Midcontinent producers.