Saudi Armco (world’s largest oil exporter) lowered pricing terms for Arab Light crude sold to Asia. This means that Saudi Arabia has no plans of backing down meanwhile, Opec rival Iran is trying to gain its lost market share.
It has also being announced that Saudi Arabian Oil Co will sell cargoes at $1.10 a barrel (below Asia’s price). Also, price was expected to drop by $1 a barrel according to Bloombery survey.
Iran aims to reach an eight year output of 4 million barrels and according to shipping data (Bloombery), Asia’s customer account has the highest share of sales.
John Kilduff (Partner at Again Capital LLC) believes that this is a jab at Iran and he is sure that Iranians will retaliate.
Brent crude is now up to 17% since they started distributions (from Nigeria to Canada) but however, the price is still 12% lower compared to previous years.
All prices have been reduced for Asian clients and the biggest cut was by $1.60. Extra light grades for US clients was also cut by 20 and 40 cents.