Saudi Aramco has cut the January price for its Arab Light grade for Asian customers by $1.20 a barrel versus December to a discount of $0.75 a barrel to the Oman/Dubai average, it said on Tuesday. The company raised its Arab Light OSP to Northwest Europe by $0.30 a barrel for January from the previous month at a discount of $4.20 a barrel to the Brent Weighted Average (BWAVE).
The Arab Light OSP to the United States was set at a premium of $0.05 a barrel to the Argus Sour Crude Index (ASCI) for January, down $0.30 a barrel from the previous month. Because the Brent to Dubai Arab Light prompt month spread rose to $3.15 a barrel from $2.55 after the OPEC deal, Saudi Arabia had more leeway to raise their OSPs to Europe and remain competitive, said Jeff Quigley, Energy Markets Director at Stratas Advisors, a Houston-based consultancy. "They are trying to capitalise on the OPEC deal-driven price increase in Europe while not losing market share in Asia," Quigley said.
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