October 1, 2014 / 5:38 PM / 3 years ago

Saudi cuts official crude prices in battle for market share

A gas flame is seen in the desert near the Khurais oilfield, about 160 km (99 miles) from Riyadh, June 23, 2008. REUTERS/Ali Jarekji/Files

DUBAI/KHOBAR (Reuters) - Saudi Aramco has sharply cut its November prices for Asian oil customers in the clearest sign yet the world’s largest exporter is competing for market share.

The oil giant slashed its flagship Arab Light selling price by $1 a barrel versus October to a discount of $1.05 a barrel to the Oman/Dubai average, it said on Wednesday, the fourth monthly price cut in a row.

The cut was bigger than anticipated by traders who expected the official selling price (OSP) differential for Arab Light crude to Asia to fall by around 70 cents a barrel in November. It underscored the ample supplies in global oil markets that have already pushed international benchmark Brent crude oil to a two-year low below $95 a barrel this week.

The state-owned oil company dropped its Arab Light OSP to Northwest Europe by 40 cents for November versus October at a discount of $3.95 a barrel to the Brent Weighted Average (BWAVE).

The Arab Light OSP to the United States was set at plus $2.05 a barrel to the Argus Sour Crude Index (ASCI) for November, down 40 cents a barrel from October.

Reporting by Rania El Gamal and Reem Shamseddine, editing by David Evans

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below