(no word on the inventory status of the strategic pork reserve)
Major tanker operator Frontline Ltd. gives thanks:
From BusinessWeek this morning:
And from Bloomberg and the Financial Times via The Center of the Universe a few hours later:Saudi Arabia will probably offer smaller discounts to ship crude to Asia amid speculation demand will increase after benchmark prices dropped almost 50 percent last year.The world’s biggest oil exporter will announce February official selling prices to buyers in Asia in coming days, after offering its Arab Light grade at the biggest discount in at least 14 years the previous month. OPEC’s largest producer may narrow the discount, according to 12 of 15 traders and refiners in a Bloomberg News survey through today. Three respondents forecast price differentials to be unchanged.
Saudi Arabia led the Organization of Petroleum Exporting Countries in maintaining production quotas while offering deeper discounts for its own cargoes, prompting speculation that it’s prepared to let prices fall to defend market share against more expensive U.S. shale supply. OPEC pumped above target for a seventh straight month in December even as U.S. output expanded to the highest level in more than three decades.
“China has been buying slightly more crude because of declining prices and we may expect some bargain hunting at this price level,” Ken Hasegawa, an energy trading manager at Newedge Group in Tokyo, said by phone today. “Still, overall demand is not so good and the Saudis don’t want to lose market share as they’ve said. I don’t think they will change their stance dramatically.”...MORE
Saudis stabilizing price
Saudi Aramco Narrows Arab Light Asia OSP Discount to $1.40
By Sherry Su
(Bloomberg) — Co. raises official selling price to a discount of $1.40/bbl to Oman/Dubai benchmark crudes for Feb. shipments, from Jan. OSP of $2 discount, according to e-mail from co.
Co. cuts Feb. official selling price of Arab Light for Northwest European buyers to $4.65/bbl discount to ICE Bwave benchmark vs $3.15 discount for Jan., according to e-mail from co.
- Jan. price was lowest since at least June 2000 when Bloomberg started compiling data
- Asia OSP discount for Arab Medium was narrowed
- Asia OSP discount for Arab Heavy was narrowed
- Mediterranean formula price for Arab Light also cut; to -$4.60 for Feb. from -$2.50 in Jan.
- Smaller changes applied to prices for U.S. buyers; light and medium grades cut, heavy grade raised
Previously:Saudi lifts oil price for Asia cuts in Europe
Jan 5 (FT) — Here’s more data for oil watchers to chew over – Saudi Arabia has just issued its selling prices for February.
Having rocked the market after two consecutive months of price cuts – first to Asia, then to the US, Saudi Aramco, the state-owned oil company, said in a statement on Monday that it would cut prices for all oil grades to customers in Northwest Europe by between $1.40 to $1.70....MORE
Transportation, divergence, and the industrial revolution (and the oil tanker king John Fredriksen)
"Oil Tankers Stream Toward China as Selloff Sparks Boom" (FRO)
