According to a Bloomberg report, Saudi Arabia has lowered oil prices for its Asian customers following a more than nine percent decline in global crude prices in the last one week on concerns over Chinese demand and global economy. Asia is considered the main market for crude exporters like Saudi Arabia.
Amid softening US economy and continued banking crisis, as well as weak economic data from China triggered a sharp decline in Brent and WTI Futures. Refining margins have also sunk.
State-controlled Saudi Aramco cut all official selling prices for Asia in June. The company’s key Arab Light grade was reduced to $2.55 per barrel above the regional benchmark, which is 25 US cents less than the current price.
Aramco sells about 60 percent of its crude shipments to Asia, of which most of them are under long-term contracts. The pricing is reviewed every month. China, Japan, South Korea and India are the biggest buyers of oil.
Saudi Aramco raised all prices for European customers and left most US grades unchanged.
Brent Futures has risen slightly in Asian morning trade by about 30 US Cents and is currently hovering above $73 per barrel, Nymex nears $70 per barrel mark.
(Edited by : Sangam Singh)
First Published: May 5, 2023 2:41 PM IST
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