Saudi Arabia continues to offer big discounts for its crude for Asian buyers despite calling a truce in its global price war under pressure from the US.
On Thursday, the state energy giant Saudi Aramco set its June official selling price for Arab Light grade crude to Asia at $5.90 a barrel below the benchmark price.
Though this is a smaller discount than it offered for May, this still represents an effort to keep up the pressure on rivals, particularly other Middle Eastern and Russian oil producers.
Saudi Arabia is not willing to lose customers in Asia, which it expects to account for two-thirds of its oil demand growth through to the end of 2025, said people familiar with the kingdom’s oil policy.
For the US, amid criticism from senators that the kingdom was flooding the market with its crude at a time when storage tanks were nearing capacity, Saudi Arabia raised the price of Arab Light to a premium of $0.75 a barrel against its benchmark.
This is up $1.50 a barrel from May and an increase of $4.50 a barrel since April when the discounts were at their largest. “Asia is where the competition is at. Not the US,” said one of the people familiar with Saudi Arabia’s oil policy.
Saudi Arabia launched the first salvo of a price war in March, drastically lowering crude export prices for the following month in a tit-for-tat battle with Russia and other oil producers as global demand collapsed.
On Thursday, the state energy giant Saudi Aramco set its June official selling price for Arab Light grade crude to Asia at $5.90 a barrel below the benchmark price.
Though this is a smaller discount than it offered for May, this still represents an effort to keep up the pressure on rivals, particularly other Middle Eastern and Russian oil producers.
Saudi Arabia is not willing to lose customers in Asia, which it expects to account for two-thirds of its oil demand growth through to the end of 2025, said people familiar with the kingdom’s oil policy.
For the US, amid criticism from senators that the kingdom was flooding the market with its crude at a time when storage tanks were nearing capacity, Saudi Arabia raised the price of Arab Light to a premium of $0.75 a barrel against its benchmark.
This is up $1.50 a barrel from May and an increase of $4.50 a barrel since April when the discounts were at their largest. “Asia is where the competition is at. Not the US,” said one of the people familiar with Saudi Arabia’s oil policy.
Saudi Arabia launched the first salvo of a price war in March, drastically lowering crude export prices for the following month in a tit-for-tat battle with Russia and other oil producers as global demand collapsed.
