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Monday, January 30, 2023

Why Middle East Producers Cut Prices In The Face Of Soaring Chinese Demand -- Gerald Jansen -- January 30, 2023

Link here.

Lots of interesting background information.

This particular paragraph (which I broke up into smaller bites) caught my eye and why I'm linking/posting the story:

When pricing its grades into Asia, Aramco cut the lighter ones much more than the heavies, a trend that it also followed with its European prices where Arab Light was lowered by $1.40 per barrel, coming in at a -$1.50 per barrel discount to ICE Brent.
In just six months since September 2022, the average formula price in Asia plummeted by $8 per barrel, whilst in Europe the decline was milder, only $5-6 per barrel.
Just as Saudi Aramco finalized the merger of Aramco Trading and Motiva Trading, moving all of its trading activity under one umbrella, prices of US-bound cargoes continue to boggle the mind as the Saudi NOC rolled over the same prices for the fourth straight month.
Hardly a surprise than exports to the United States are a mere quarter of what they were in early autumn, competing with late 2020 readings for the title of weakest flows on record with only three tankers departing towards the US this month.

See US-Saudi imports, this link


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