[ad_1]
Saudi Arabia slashed prices for oil sales to Asia and the US for October shipments, a sign that the world’s largest exporter may see fuel demand fluctuate amid outbreaks of the Covid- coronavirus. 19.
State oil producer Saudi Aramco is cutting its benchmark Arab Light crude more than expected and lowering the law to a discount for the first time since June for buyers in Asia. It is the second consecutive month of barrel cuts to Asia. Aramco will also cut prices for lighter barrels for Northwest Europe and the Mediterranean region.
Aramco is cutting prices to Asia for October Light category shipments by $ 1.40 a barrel, 50 cents below the regional benchmark. The company was expected to cut prices by $ 1 a barrel, at a discount of 10 cents, according to a Bloomberg survey of eight traders and refiners.
Demand for oil has plummeted this year as the pandemic forced governments to block economies, airlines to call off struggles, and workers to stay home.
Saudi Arabia joined Russia and other producers in the OPEC + coalition in making record cuts in production, removing roughly one-tenth of world supply from the market. Crude prices have more than doubled since April to around $ 45 a barrel, but are still down more than 30% this year.
The Saudis had previously supported the rally by raising prices each month from June to August. However, demand from refineries has dampened due to weak earnings from converting crude into gasoline and other fuels. Even as economies began to recover, abundant inventories, rather than supplies of fresh crude, absorbed much of the increased demand.
Saudi Arabia often sets the tone for the pricing decisions of other Middle Eastern suppliers, including Iraq and the United Arab Emirates, the Organization of the Petroleum Exporting Countries’ second and third largest producer. – Bloomberg
[ad_2]
