Saudi Arabia may cut October crude oil sales to Asian buyers

Recently, industry sources said Saudi Arabia and Aramco are expected to cut the official price of crude oil for Asian buyers for the second straight month as the Middle East benchmark crude price slides and refining margins are weak. The sources of Saudi Arabia in October, the average of official crude oil prices are expected to cut $1 per barrel, the largest monthly decline since May, the estimated range of $ 0.5 per barrel down to $1.80 within the.

As for the reasons for the price cut, sources said one is the weak market demand for the fuel due to the epidemic that has restricted traffic. Saudi Aramco expects this situation to continue for some time.


Saudi Aramco's oil exports to China fell 23.4% to 1.26 million barrels per day in July, data showed, making Saudi Aramco the third-largest supplier of oil to China, behind Russia and Iraq.


Meanwhile, China's imports of US crude oil rose 139% year-on-year to 864,200 bpd in July, putting the US in fifth place among Chinese crude suppliers.

After September, Saudi Aramco is expected to redeem its Asian buyers. Previously many Asian buyers crude oil imports have increased dramatically mainly because they wanted to take advantage of low oil prices to hoard oil, now with the gradual recovery of oil prices, this hoarding demand will also fade away, everything may slowly return to normal.　


In a few days, Saudi Aramco will announce the official selling price (OSP) of crude oil for October, which is known to usually be announced around the 5th of each month.


For now, Saudi Aramco remains a force to be reckoned with when it comes to crude oil exports. Recently, Saudi Aramco has discovered two new oil and gas fields in the north of the country. The two new discoveries are the Hadat Al-Hajrah gas field, located in the Al-Jawf area, and the oil and gas field of Abraq Al-Talul, located in the northern border area.


The Hadat Al-Hajrah gas field is already flowing at an average rate of 16 million standard cubic feet per day, accompanied by 1,944 barrels of condensate, while the Abraq Al-Talul field is capable of producing 3,189 barrels per day of unconventional, high-quality Arabian light oil and 1.1 million cubic feet of natural gas.


As one of the world's largest producers of crude oil and condensate, Saudi Aramco will produce an average of 13.2 million barrels of oil equivalent per day in 2019.