Rystad Energy comments on reports that Saudi Aramco may delay its September pricing of crude

Published by Nicholas Woodroof, Editor
Oilfield Technology, Tuesday, 04 August 2020 16:45

Following reports that Saudi Aramco may delay its September crude oil pricing, Rystad Energy's Head of Oil Markets, Bjornar Tonhaugen, has commented: "There may be more than the Eid celebrations behind the reported delay in the Aramco September OSP announcement, as the world’s largest oil company also sees great uncertainty in the near term demand outlook for the Kingdom’s crude."

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/

tengizchevroil starts WPMP operations at tengiz oil field in Kazakhstan

Friday 26 April 2024 09:44

Chevron has announced today that its 50 % owned affiliate Tengizchevroil LLP (TCO) has safely commenced operations at its wellhead pressure management project (WPMP) at the Tengiz oil field in Kazakhstan.

You might also like