State-owned Aramco has reduced its official selling prices (OSPs) for its crudes bound for the U.S. in December. The company has been lowering prices since September.
Differentials for Arab Extra Light and Arab Light crudes were reduced 10c/bbl; Arab Medium and Heavy differentials will be 30c/bbl cheaper than the month prior. These key export grades are priced as a differential to ASCI (Argus Sour Crude Index). See table below for details.
These price cuts are coming ahead of trade-media reports, citing unnamed sources, that OPEC and its allies (commonly known as OPEC+) could postpone by a month or more a planned hike in oil production that was scheduled to start in December. The possible delay was tied to concerns about soft oil demand and rising supply. Since the pandemic, the alliance has been involved in a broad output-cut deal to manage supply and boost prices at a time when demand was weak.
