Aramco Cuts Asia Oil Pricing as Saudis Seen Losing Market Share | Bloomberg


Saudi Arabia, the world’s largest crude exporter, cut pricing for June oil exports to Asia as it fights to defend sales in its biggest regional market. The kingdom raised pricing to all other regions.

State-owned Saudi Arabian Oil Co., known as Saudi Aramco, lowered its official pricing for Arab Light crude to Asia by 40 cents to an 85 cent discount to the regional benchmark, it said in an emailed statement, in line with the median estimate in a Bloomberg survey of five refiners and traders in the region.

Saudi Arabia has ceded market share to OPEC rivals Iran and Iraq by making deeper cuts in output than it promised under the group’s agreement to curb production. Analysts including Christof Ruehl of Abu Dhabi Investment Authority and Edward Bell at Dubai lender Emirates NBD PJSC say Iran has gained ground since the easing of sanctions on its oil industry last year, and the OPEC deal permits it to pump more. Even as Aramco trims output, it’s been lowering pricing to Asia to defend sales, Bell said.

By contrast, Aramco raised the pricing on all grades of oil for U.S. sales for the second consecutive month. It also raised pricing for Europe and the Mediterranean, reversing cuts made there last month.

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Aramco Cuts Asia Oil Pricing as Saudis Seen Losing Market Share – Bloomberg.