Fear increases as Saudi Arabia seeks to cut oil prices

According to a Bloomberg report, Saudi Arabia has cut official prices for crude oil sales, leading to a recovery in recovery, saying this is the first time Riyadh has raised its oil prices against the benchmark since June Has cut.

This time, prices were reduced for both Asian and American buyers, as Aramco kept its prices high for American refiners for six consecutive months. For Asian buyers, this was the second consecutive month of price cuts, suggesting that Saudi oil’s appetite is declining after Chinese refiners spent a better share of stocking on cheap crude amid price declines and an epidemic.

In the past few months China, a major market, Saudi Arabia has been losing market share to its geopolitical partner, the United States. China has imported record amounts of crude oil in recent months, taking advantage of the lowest crude oil prices in two decades in April, to stock up on dirt-cheap oil.

In their bargain hunt for low-priced oil, Chinese state oil giants and independent refiners sown cheap US cargo in April, which were loaded in May, began arriving in China in June, and set a record in July. .

Meanwhile, Saudi oil exports to the US were the lowest in less than three decades in August this year, reaching an average daily of around 177 million bpd to 177,000 bpd in April. This month, Saudi oil imports to the US are still seen at 264,000 bpd, the lowest since 1985.

A month ago, Aramco’s chief executive said he was optimistic about the recovery of oil demand in Asia, seeing it return to pre-crisis levels. This was followed by Amin Nassar’s remarks in June that the worst of the crisis had come to an end, and the second half of the year would be much stronger in terms of oil demand than the first.

Based on the latest price adjustment for shipments in October, this may not be the case.

By Irina Slavin for Oilprice.com

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