Saudi reduction shows cycle of weak crude oil pricing is not over yet

From this article at South China Morning Post:

Saudi Arabia’s decision to lower prices for oil loading in November shows that the battle for market share in an over-supplied Asian crude market is far from over.

Saudi Aramco, the kingdom’s state-owned oil company, cut its official selling price (OSP) for its main Arab Light grade to Asia to a discount of US$1.60 a barrel to the regional benchmark Oman/Dubai price for November from a premium of 10 cents for October cargoes.

While the reduction was at the lower end of expectations of traders, it still indicates the Saudis are willing to accept reduced prices in order to keep their crude competitive.

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About Scott

Live next to Chevron refinery. Lots of petroleum consultants in the area. I am interested in learning more about the industry. Also, interested in finance, business, and investing in world markets.
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