State-owned Saudi Arabian Oil Corporation which is better known as “Saudi Aramco” has plunged the official selling price of its “Arab Light Crude” by 10 percent a barrel making it cost $1.20 a barrel, much above the Middle East benchmark as per reports gathered on Tuesday.The move has been regarded bullishly by future traders.
The oil prices in Saudi Arabia are considered to be key markers for producers from the Middle East as it largely impacts what refineries globally pay for crude from the world’s largest export region.
Other prices alter moves from Saud Arabia were mixed.Thirteen out of 21 were increased, 7 were completely slacked while other’s remain unchanged.
Saudi Arabia sells 4 different grades of oil to Asia which are Super Light, Extra Light, Medium and Heavy. These were lowered to a range of 20-50 percent as compared to their Oman/Dubai Benchmark.
While all other U.S prices were cut in relative to Argus Sour Crude Index, Extra Light was an exception that was raised to a barrel of $3.10 accounting for 20 percent raise. Other gradients-Heavy, Medium, and Light were reduced by 10 percent a barrel.
While customers board in the Mediterranean witnessed a surge in oil price, the main focus remained for North West European Buyers.