Preview: Saudi Arabia may raise Sept crude prices for a third month
- Date: 01-Aug-2023
- Source: Zawya
- Sector:Oil & Gas
- Country:Saudi Arabia
Preview: Saudi Arabia may raise Sept crude prices for a third month
SINGAPORE - Saudi Arabia, the world's biggest oil exporter, may raise its price for Arab Light crude for sale to Asian refiners for a third month as its voluntary output cuts may be extended, further tightening the supply of high-sulphur, or sour, crude.
State-owned Saudi Aramco may raise the official selling price (OSP) for its flagship Arab Light crude in September by about 45 cents from August to $3.65 a barrel above Oman/Dubai quotes, which would be the grade's highest premium this year, a Reuters survey of five refining sources showed.
Saudi Arabia has said it will cut its production by 1 million barrels per day (bpd) in July and August on top of broad reductions by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to limit oil supply into 2024 to support prices.
Market participants and analysts forecast Saudi Arabia will extend the voluntary cut for another month to include September when OPEC+ holds its monthly Joint Ministerial Monitoring Committee meeting on Aug. 4. "It's always hard to make prediction on Saudi's OSPs. But the rollover of the 1 million bpd cut is seen as a baseline in September price assessments," said one respondent.
The supply reductions have