Saudi Arabia lowers selling prices for Asia – Commerzbank

Source Fxstreet

Saudi Arabia, the world's largest oil exporter, cut its official selling prices (OSPs) for oil deliveries to Asia in December, indicating weaker oil demand, Commerzbank’s commodity analyst Barbara Lambrecht notes.

Iranian oil becomes more expensive

“Accordingly, Asian buyers will have to pay a premium of only $1.7 per barrel for Arab Light compared to the Oman/Dubai benchmark. This is 50 US cents less than this month. Surveyed refiners had expected a premium in this range. Saudi Arabia competes in Asia with lower-priced suppliers such as Iran and Russia.”

“This could change if US President-elect Trump were to enforce the existing oil sanctions against Iran more strictly again. Iran currently covers about 13% of China's crude oil import needs. According to trade sources, the discounts for Iranian oil delivered to China compared to Brent recently fell to their lowest level in five years because Iran was exporting less oil in October due to concerns about a retaliatory attack by Israel.”

“This could be a taste of what could come if US sanctions tighten. The beneficiary of this would be Saudi Arabia, which could then offer its oil again at higher premiums.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
WTI moves above $64.50 due to odds of Saudi Arabia raising August Oil prices for AsiaWest Texas Intermediate (WTI) Oil price gains ground for the second successive session, trading around $64.60 during the European hours on Tuesday.
Author  FXStreet
Jul 01, Tue
West Texas Intermediate (WTI) Oil price gains ground for the second successive session, trading around $64.60 during the European hours on Tuesday.
placeholder
Dogecoin Closes June In The Red With 14% Losses, Will July Be Any Better?With the close of June, the Dogecoin price has once again confirmed the bearish trend of the month.
Author  Bitcoinist
Jul 02, Wed
With the close of June, the Dogecoin price has once again confirmed the bearish trend of the month.
placeholder
Solana (SOL) Cools After Recovery — Resistance Proving Difficult to CrackSOL price is now correcting gains and might struggle to rise above the $155 resistance.
Author  NewsBTC
Jul 04, Fri
SOL price is now correcting gains and might struggle to rise above the $155 resistance.
placeholder
Silver Price Forecast: XAG/USD consolidates right below $37.00 in risk-off marketsSilver consolidates the previous two days' gains and remains pinned near $37.00.
Author  FXStreet
Jul 04, Fri
Silver consolidates the previous two days' gains and remains pinned near $37.00.
Related Instrument
goTop
quote