Moreover, the OSPs have also been a signal beacon for the Saudi Arabian supply policy recently. For example in March, at the onset of the price-volume war, when it slashed prices to make its crude highly competitive in the market.
Recently, also in June, it raised prices meaningfully for July loadings as the Kingdom made deep cuts in production to help kick-start the market recovery.
We wouldn’t like to speculate too much right now about what’s behind Saudi Aramco’s delay, but the move could potentially mean lowering the OSPs even more than consensus expects.
If that happens, deeper pricing cuts could prove to be a bearish indicator, especially if interpreted as “demand is weaker according to Aramco having their finger on the pulse”.
Patience is the word now, as August is expected to undoubtedly be a month of market volatility."
Read the article online at: https://www.oilfieldtechnology.com/special-reports/04082020/rystad-energy-comments-on-reports-that-saudi-aramco-may-delay-its-september-pricing-of-crude/