Trade sources are expecting Saudi Arabia to hike its various grades of crude oil prices it will sell to Asia in September.
A Reuters survey of sources at six Asian refineries predicted that the September official selling price (OSP) for Arab Light crude may climb by 36 cents, following August’s 17-month high. At the moment, Asia’s demand for light crude is strong on the back of strong margins for gasoline and naphtha.
On the other hand, one source saw prices for Saudi’s Arab Medium and Arab Heavy grades would be cut to stay competitive as the supplies could improve. Other respondents estimated these grades’ prices to rise by smaller rates than the light grades.
According to Refinitiv preliminary assessment, Saudi’s exports soared by 11.8% year-on-year in July at 6.6 million bpd. It was just below the volume of July 2019, prior to the pandemic.
On a related note, demand growth from the world’s biggest importer, China, is weakening as Beijing cracked down on trading of import quotas.
