Saudi Arabia may cut February heavy crude prices to Asia – Reuters survey
According to the latest survey conducted by Reuters on Thursday, the OPEC's top oil producer, Saudi Arabia, is expected to cut February prices for heavier crude grades sold to Asia due to weaker fuel oil margins.
Four oil refiners participated in the survey.
“The official selling prices (OSPs) for Arab Medium and Arab Heavy crude grades are expected to fall by up to 50 cents a barrel in February from the previous month.
Arab Heavy was too expensive in the past few months.
A 15-cent drop in the price spread between the first and third month DME Oman crude futures may also prompt Saudi Arabia to lower OSPs.
For light grades, two of the respondents expect the February OSP for flagship Arab Light crude to drop by 20-30 cents to keep Saudi oil competitive against rising U.S. shale oil supplies.
The same respondents also expect a 20-50 cent cut for the February Arab Extra Light OSP.”