Saudi Arabia will lower oil prices in Asia for the first time this year

Sinopec News.

According to sources from Asian refiners surveyed by Reuters, Saudi Arabia, the world's largest oil exporter, is expected to lower the official selling price (OSP) of its Asian flagship Arabian Light crude oil by an average of US$0.

If the expected price cut is realized, it will be Saudi Arabia's first price cut to Asia in 2021.

According to a Reuters survey, the uncertainty of demand from India, the world's third largest oil importer, and the weakest price structure in Dubai's benchmark oil price in the Middle East in the past two months are expected to be the key reasons for the decline in Saudi oil prices.

Officials with preliminary data told Bloomberg that India’s gasoline sales in April were the weakest since August 2020.

India’s demand for diesel, gasoline and jet fuel is expected to fall further in the next few days or even weeks.

In addition, the Dubai benchmark index rose slightly last week, indicating that the market is not nervous.

Last month, Saudi Arabia raised the price of crude oil for Asian buyers by US$0.

　　Wang Lei excerpted from today's oil prices

　　The original text is as follows:

　　Saudis Set To Cut Oil Prices To Asia For First Time This Year

　　Saudi Arabia is likely to reduce the price of its crude oil for Asia in June in what will be the Kingdom's first price cut this year amid signs of declining demand in India and weakening Dubai benchmark, according to a Reuters survey of Asian refiners.

　　Saudi Arabia, the world's largest oil exporter, is expected to cut its official selling price (OSP) for the flagship Arab Light grade for Asia in June by an average of $0.

　　The expected price cut, if it materializes, would be the first time Saudi Arabia has reduced prices to Asia in 2021.

　　Uncertainty over demand in the world's third-largest oil importer, India, as well as the weakest price structure at the Middle Eastern Dubai benchmark in nearly two months, are expected to be the key reasons for a reduction in the Saudi oil prices, according to the Reuters survey.

　　Sales of gasoline in India were the weakest in April since August 2020, officials with knowledge of preliminary data told Bloomberg.

　　India's demand for diesel, gasoline, and jet fuel is expected to further decline in the coming days and probably weeks, with no sign that the second COVID wave in the country would peak within days.

　　In addition, last week, the Dubai benchmark flipped to a slight contango, signaling not-so-tight market.

　　Last month, the Saudis raised their crude oil prices for Asian buyers in May by $0.