Saudi Arabia raises the official price of Arabian light crude oil for Asian customers in November

On October 7, Saudi Aramco, the state-owned oil producer of Saudi Arabia, stated that it would increase the official price of Arabian light crude oil for Asian customers in November by US$0.
10/barrel, to a discount of US$0.
40 per barrel to the average price of Oman/Dubai crude oil.
.
The official selling price of Arabian light crude oil for Northwestern Europe and the United States is set at a discount of US$2.
00 per barrel to Brent crude oil and a premium of US$1.
05 to the Argus high-sulfur crude oil price index ASCI, both unchanged from October .
According to a survey, analysts had expected Aramco to maintain the official crude oil prices for Asian customers in November.
It is reported that Saudi Arabia’s increase in the official selling price of Arabian Light Crude Oil, which it exports to the most profitable market, is a signal that the market may be rising, or at least Saudi Arabia’s National Petroleum Corporation (Saudi Aramco) believes it is rising because of Asian Refining The market rose in the last week of September.
Due to the rebound in demand before the winter, the fuel profit market of Asian refineries has reached its highest level in several months.
However, compared with the usual profit margin, the profit margin is still sluggish.
In the fourth quarter, Asian aviation fuel demand is expected to decrease by 700,000 barrels per day from the same period last year.
It is expected that this winter heating season in Asia will boost demand for refined oil (albeit temporarily) and ultimately boost demand for crude oil.
For a long time, traders have been paying attention to the pricing actions of the world's largest oil exporter and going to Asia to look for signs of future trends.
Other Middle Eastern crude oil exporters usually follow the example of Saudi Aramco.
Saudi Aramco lowered the price of crude oil shipped to the Mediterranean in November, indicating that crude oil prices in the region may be about to weaken.
Saudi Aramco cut the official selling price of its crude oil exports to Asia in September and October, but the renewed bullish sentiment in the market changed Saudi Arabia's thinking.
In addition, this is Saudi Aramco's successive reductions in the price of crude oil for Asian customers.
Since the beginning of this year, the global epidemic has broken out and multinational economies have fallen into blockade, which has weighed on the global demand for crude oil.
The OPEC+ alliance led by Saudi Arabia and Russia agreed in April to implement a record production cut, cutting global crude oil supply by nearly 10%, in order to alleviate the decline in demand caused by the new crown virus crisis.
Some analysts pointed out that due to the poor profitability of converting crude oil into gasoline and other fuels, demand from refineries has weakened, and even if the economy begins to recover, a large amount of inventory has digested most of the increase in demand.