Monday , December 23 2024
Home / Mosler Economics / Saudi pricing, layoffs

Saudi pricing, layoffs

Summary:
If true, the .10 increase in the differential for Asia is substantial. However the other, much smaller adjustments are not material, so it’s hard to say from this information whether or not this is a policy move designed to stabilize prices at current levels: (Bloomberg) — Saudi Aramco raised prices for most crude grades sold to Northwest Europe, Mediterranean next month while lowering prices for most grades it sells to U.S. Official pricing statement confirms increased prices for Asia reported earlier today by Bloomberg Differential for Arab Light crude sold to U.S. kept unch at 35c/bbl premium to ASCI benchmark Other grades sold to U.S. all lowered by 20c m/m, to .40 premium for Extra Light, .25 discount for Medium, .75 discount for Heavy Light crude to NWE raised 15c to discount of .45 versus ICE Bwave marker; other grades raised except Extra Light Light crude to Mediterranean raised 25c to discount of .

Topics:
WARREN MOSLER considers the following as important:

This could be interesting, too:

Merijn T. Knibbe writes Christmas thoughts about counting the dead in zones of armed conflict.

Lars Pålsson Syll writes Mainstream distribution myths

Dean Baker writes Health insurance killing: Economics does have something to say

Lars Pålsson Syll writes Debunking mathematical economics

If true, the $1.10 increase in the differential for Asia is substantial.

However the other, much smaller adjustments are not material, so it’s hard to say from this information whether or not this is a policy move designed to stabilize prices at current levels:

(Bloomberg) — Saudi Aramco raised prices for most crude grades sold to Northwest Europe, Mediterranean next month while lowering prices for most grades it sells to U.S.

  • Official pricing statement confirms increased prices for Asia reported earlier today by Bloomberg
  • Differential for Arab Light crude sold to U.S. kept unch at 35c/bbl premium to ASCI benchmark
    • Other grades sold to U.S. all lowered by 20c m/m, to $2.40 premium for Extra Light, $1.25 discount for Medium, $1.75 discount for Heavy
  • Light crude to NWE raised 15c to discount of $4.45 versus ICE Bwave marker; other grades raised except Extra Light
  • Light crude to Mediterranean raised 25c to discount of $3.95 versus ICE Bwave marker; other grades raised except Extra Light

Saudis Said to Boost Oil Pricing for Asia by Most in 14 Months

By Serene Cheong

May 5 (Bloomberg)

Arab Light said to be set at 25 cent premium to Oman-Dubai
That’s strongest differential for grade since September 2015

Saudi Arabia was said to raise its pricing for June oil sales to Asia by the most since April 2015, in a sign that the world’s biggest exporter is expecting demand to recover as the global crude market rebalances.

State-owned Saudi Arabian Oil Co. increased its official selling price for Arab Light crude to Asia by $1.10 a barrel to 25 cents more than regional benchmarks Oman and Dubai, said people with knowledge of the matter who asked not to be identified because the information is confidential. The company, known as Saudi Aramco, was predicted to raise its pricing for the grade by 65 cents a barrel, according to the median estimate in a Bloomberg survey of five refiners and traders.

Looks like this is continuing to trend higher, post oil capex collapse:
Saudi pricing, layoffs

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *