Saudi Arabia: Kingdom Lowers Oil Prices for Asia but Raises for Europe
Next month, Arab Light crude oil prices will rise $0.3 per barrel from November prices for both buyers in northwestern Europe and the entire Mediterranean region
Saudi Arabian energy company Saudi Aramco announced that crude oil prices for China and some other Asian customers will be reduced in December 2024, while those for customers in Western Europe will be proportionately increased.
According to the price list published by Saudi Aramco, the “official” selling price of benchmark Arab Light crude (80% of the Kingdom’s total oil exports) to Asian buyers will exceed the cost of the Oman/Dubai oil basket by only $1.70 per barrel, i.e. it will be $0.5 below the $2.2 per barrel premium recorded in November.
Similarly, official selling prices for Arab Extra Light and Super Light grades were also reduced for Asian buyers by $0.5 per barrel in December, while Arab Medium and Arab Heavy prices fell by less than $0.4 per barrel.
At the same time, Saudi Aramco raised its official Arab Light realized prices for next month by $0.3 per barrel compared to November prices for both customers in northwest Europe and the entire Mediterranean region.
According to the Bloomberg news agency, “the decline in prices for Saudi oil exported to Asian markets can be attributed to falling demand and comes after the recent decision by OPEC+ countries to postpone the restoration of oil production for another month, until the end of December.” The countries that have agreed to voluntarily cut production – by a total of 2.2 million barrels per day – are Russia, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
