Connection

popular articles

Guyana selects Fulcrum LNG with ExxonMobil
Brazil: Eletronuclear optimizes costs and postpones Angra 3 to 2031
France opens public consultation on its energy strategy until 2035
Armed men set fire to Chinese Rucalhue hydropower construction site in Chile
ABB invests $120 million in two US factories to meet data centre demand

Saudi Arabia: reduction in the price of Arabian light crude oil

Saudi Arabia plans to cut the price of its Arabian light crude oil to Asia in June despite a further OPEC+ production cut. This decision is in response to falling fuel prices and growing demand for cheap Russian crude oil in China and India.

Please share:

In a surprise move, Saudi Arabia, the world’s largest oil exporter, may cut the price of its Arabian light crude oil to Asia in June. This decision was made despite a further reduction in production of OPEC+ and a recent increase in Middle Eastern crude oil prices due to supply problems in Asia. Saudi Aramcothe state-owned oil giant, may reduce the official selling price of its medium and sour crude by about 40 cents per barrel in June, after three months of price increases.

Middle East crude oil commercial contracts in Asia slow down

According to five people interviewed by Reuters, the move is a response to falling fuel prices and growing demand for cheap Russian crude oil in China and India. The refining margin for a typical Asian refiner, which processes Middle Eastern crude oil, hit a six-month low of $2.35 a barrel last Friday, and diesel margins fell 27% this month, while gasoline margins fell 49%.

As a result, the flow of commercial contracts for Middle Eastern crude oil to Asia has slowed, and some refiners are considering production cuts while many in the region have already set maintenance schedules for June-August. If oil prices continue to rise, refineries will have to scale back operations, reduce purchases and operate with low feedstock inventories before their turnarounds, according to one respondent.

Saudi Arabia takes action on falling fuel prices

The market also expects China to issue a new batch of refined product quotas soon, adding more supply to an already saturated market. Discounted Russian crude oil has been acquired by refiners in China and India, the world’s largest and third largest oil importers, replacing demand for Middle Eastern crude oil.

Saudi crude OSPs (official selling prices) are usually published around the 5th of each month and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels of crude oil destined for Asia. Saudi Aramco officials do not comment on the kingdom’s monthly PSOs as a matter of policy.

In response to falling fuel prices and growing demand for cheap Russian crude oil in China and India, Saudi Arabia, the world’s largest oil exporter, plans to cut the price of its Arabian light crude oil to Asia in June. This decision was made despite a further OPEC+ production cut and a recent increase in Middle Eastern crude oil prices due to supply problems in Asia.

Register free of charge for uninterrupted access.

Publicite

Latest news

Guinea-Bissau connects to the sub-regional power grid to strengthen its supply
Russia and Iran bet on a rise in trade with their free trade agreement
CEA and CNRS launch €50mn programme for superconductors
Enedis strengthens internal procedures after new corruption allegations
China’s wind and solar capacity surpasses thermal power for the first time

Recently published in

Tariffs, Oversupply: Oil Industry Faces Imminent Global Contraction

The global oil industry anticipates a significant decline in exploration and production investments from 2025, amid persistent oversupply, exacerbated by increased U.S. tariffs and recent decisions by OPEC+.
The oil industry braces for increased uncertainty: tariffs, price volatility, and investment risks
The global oil industry prepares for further disruptions as oil prices fall below USD 60 per barrel, a level unseen since 2021. The decline in investments, particularly in the US shale sector, raises concerns.
en_1140290956540-13
The oil industry braces for increased uncertainty: tariffs, price volatility, and investment risks
The global oil industry prepares for further disruptions as oil prices fall below USD 60 per barrel, a level unseen since 2021. The decline in investments, particularly in the US shale sector, raises concerns.
en_1140290956540-13
US oil stocks rise less than expected, crude prices under pressure
US crude inventories increased by 200,000 barrels last week, far below analysts' forecasts. However, oil prices remain under pressure following the announcement of a potential rise in production by OPEC+.
en_1140290960540-14
US oil stocks rise less than expected, crude prices under pressure
US crude inventories increased by 200,000 barrels last week, far below analysts' forecasts. However, oil prices remain under pressure following the announcement of a potential rise in production by OPEC+.
en_1140290960540-14
Thousands of miners block La Paz to protest fuel shortage
Thousands of miners blocked the streets of La Paz on April 23, 2025, to protest the shortage of dollars and fuel, which is particularly affecting Bolivia's mining sector.
en_1140290952540-14
Thousands of miners block La Paz to protest fuel shortage
Thousands of miners blocked the streets of La Paz on April 23, 2025, to protest the shortage of dollars and fuel, which is particularly affecting Bolivia's mining sector.
en_1140290952540-14

OPEC calls on IEA to prioritize energy security over net zero ideology

OPEC Secretary General Haitham Al Ghais emphasizes the need to reconcile energy security with emission reduction goals, in light of the International Energy Agency's (IEA) approach.
New oil discovery in Gabon: BW Energy confirms potential of 56 million barrels
The DBM-1 ST2 appraisal well confirms a significant oil discovery offshore Gabon. The Bourdon project could add up to 25 million recoverable barrels to BW Energy's reserves, further strengthening the Dussafu licence development.
en_1140290952540-13
New oil discovery in Gabon: BW Energy confirms potential of 56 million barrels
The DBM-1 ST2 appraisal well confirms a significant oil discovery offshore Gabon. The Bourdon project could add up to 25 million recoverable barrels to BW Energy's reserves, further strengthening the Dussafu licence development.
en_1140290952540-13
Woodside announces stable production in Q1 2025 despite weather impacts
Woodside Energy recorded stable production and revenues of 3,315 million USD in Q1 2025, with a notable increase in production at Sangomar, but a slight decline due to weather impacts at other sites.
en_1140290948540-14
Woodside announces stable production in Q1 2025 despite weather impacts
Woodside Energy recorded stable production and revenues of 3,315 million USD in Q1 2025, with a notable increase in production at Sangomar, but a slight decline due to weather impacts at other sites.
en_1140290948540-14
TAG Oil sells New Zealand oil royalty interests for USD 2.5 mn
Canadian company TAG Oil has completed the sale of its interests in five production permits in New Zealand to Kiwi Royalty Limited, for a total consideration of up to USD 2.5 mn.
en_1140290952540-12
TAG Oil sells New Zealand oil royalty interests for USD 2.5 mn
Canadian company TAG Oil has completed the sale of its interests in five production permits in New Zealand to Kiwi Royalty Limited, for a total consideration of up to USD 2.5 mn.
en_1140290952540-12

Egypt to drill 75 new oil wells to stabilise national output

The Egyptian government is launching a 75-well drilling campaign in the Eastern Desert, aiming for a 9% increase in crude output in fiscal year 2024/2025.
ReconAfrica signs exploration deal for 5.2 mn oil acres in Angola
Reconnaissance Energy Africa has signed a memorandum of understanding with ANPG to explore 5.2 mn onshore acres in Angola, expanding its operations into the Damara Fold Belt and Rift Basin.
en_1140290954540-11
ReconAfrica signs exploration deal for 5.2 mn oil acres in Angola
Reconnaissance Energy Africa has signed a memorandum of understanding with ANPG to explore 5.2 mn onshore acres in Angola, expanding its operations into the Damara Fold Belt and Rift Basin.
en_1140290954540-11
Libya: Economic recovery dependent on oil, but weakened by lack of reforms
The IMF forecasts robust economic growth for Libya in 2025 driven by oil, but warns that structural reforms are essential to avoid renewed vulnerability to global market shocks.
en_1140290960540-10
Libya: Economic recovery dependent on oil, but weakened by lack of reforms
The IMF forecasts robust economic growth for Libya in 2025 driven by oil, but warns that structural reforms are essential to avoid renewed vulnerability to global market shocks.
en_1140290960540-10
Washington imposes sanctions on Chinese refinery for processing Iranian oil
The United States has sanctioned Shandong Shengxing Chemical Co., accused of purchasing Iranian oil. This move is part of the "maximum pressure" strategy against Iran, aimed at limiting its oil exports.
en_1140290954540-10
Washington imposes sanctions on Chinese refinery for processing Iranian oil
The United States has sanctioned Shandong Shengxing Chemical Co., accused of purchasing Iranian oil. This move is part of the "maximum pressure" strategy against Iran, aimed at limiting its oil exports.
en_1140290954540-10

Rönesans Holding launches $2 billion polypropylene production plant in Turkey

Rönesans Holding announces a major $2 billion investment to build a polypropylene (PP) production plant in Ceyhan, Turkey, in partnership with SONATRACH and Stolt-Nielsen. This project is expected to strengthen the country’s industrial self-sufficiency.
Libya launches global roadshow to boost oil investment
Libya begins an international promotional tour to present 22 oil blocks, aiming to revive a strategic sector affected by years of instability.
en_1140290961540-9
Libya launches global roadshow to boost oil investment
Libya begins an international promotional tour to present 22 oil blocks, aiming to revive a strategic sector affected by years of instability.
en_1140290961540-9
Tullow Oil sells Kenyan assets to Gulf Energy for $120 mn and remains on standby
Tullow Oil sold its stakes in the Lokichar Basin to Gulf Energy while retaining a future entry right, marking a new step in its debt reduction strategy in Kenya.
en_1140290954540-9
Tullow Oil sells Kenyan assets to Gulf Energy for $120 mn and remains on standby
Tullow Oil sold its stakes in the Lokichar Basin to Gulf Energy while retaining a future entry right, marking a new step in its debt reduction strategy in Kenya.
en_1140290954540-9
US crude oil inventories rise less than expected
US crude reserves rose by only 500,000 barrels, falling short of forecasts, while exports reached their highest level in a year.
en_1140290952540-9
US crude oil inventories rise less than expected
US crude reserves rose by only 500,000 barrels, falling short of forecasts, while exports reached their highest level in a year.
en_1140290952540-9

Amplify Energy revises merger agreement with Juniper Capital, secures additional $10 mn

Amplify Energy has amended the terms of its merger with Juniper Capital, which will inject an additional $10 mn in cash to strengthen the combined entity's financial position amid oil price volatility.
IEA lowers global oil demand forecast amid rising trade tensions
The International Energy Agency anticipates weaker oil demand growth in 2025, driven by US tariff tensions disrupting market stability and weighing on the shale oil sector.
en_1140290948540-9
IEA lowers global oil demand forecast amid rising trade tensions
The International Energy Agency anticipates weaker oil demand growth in 2025, driven by US tariff tensions disrupting market stability and weighing on the shale oil sector.
en_1140290948540-9
BP discovers new oil field 190 km off the coast of Louisiana
British group BP has announced a new oil discovery in the deep waters of the Gulf of Mexico, strengthening its investment strategy in hydrocarbons with the aim of increasing production by 2030.
en_1140290963540-5
BP discovers new oil field 190 km off the coast of Louisiana
British group BP has announced a new oil discovery in the deep waters of the Gulf of Mexico, strengthening its investment strategy in hydrocarbons with the aim of increasing production by 2030.
en_1140290963540-5
International Petroleum repurchases 277,060 common shares in April across two markets
International Petroleum Corporation repurchased 277,060 common shares between 7 and 11 April under its ongoing share buyback programme, using the Toronto and Stockholm exchanges.
en_1140290968540-3
International Petroleum repurchases 277,060 common shares in April across two markets
International Petroleum Corporation repurchased 277,060 common shares between 7 and 11 April under its ongoing share buyback programme, using the Toronto and Stockholm exchanges.
en_1140290968540-3

German Schwedt refinery under pressure amid Russian oil embargo

In Schwedt, past dependence on Russian oil threatens industrial prospects as the debate on lifting sanctions intensifies and divides Germany’s political class.
Petro-Victory boosts growth in Brazil through partnerships and acquisitions
Petro-Victory Energy secures key assets in Brazil through strategic alliances and acquisitions, consolidating its onshore market position and initiating a new phase of development.
en_1140290953540-6
Petro-Victory boosts growth in Brazil through partnerships and acquisitions
Petro-Victory Energy secures key assets in Brazil through strategic alliances and acquisitions, consolidating its onshore market position and initiating a new phase of development.
en_1140290953540-6
Trio Petroleum secures producing oil assets in Saskatchewan’s heavy oil basin
Trio Petroleum Corporation has completed the acquisition of producing oil assets from Novacor Exploration in the prolific Lloydminster region of Canada, consolidating its strategic presence in North America's heavy oil sector.
en_1140290958540-5
Trio Petroleum secures producing oil assets in Saskatchewan’s heavy oil basin
Trio Petroleum Corporation has completed the acquisition of producing oil assets from Novacor Exploration in the prolific Lloydminster region of Canada, consolidating its strategic presence in North America's heavy oil sector.
en_1140290958540-5
France records 2.8% drop in road fuel deliveries in March
Road fuel volumes declined while jet fuel and non-road diesel increased, according to March 2025 data from the Comité Professionnel du Pétrole.
en_1140290963540-3
France records 2.8% drop in road fuel deliveries in March
Road fuel volumes declined while jet fuel and non-road diesel increased, according to March 2025 data from the Comité Professionnel du Pétrole.
en_1140290963540-3

Advertising

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

VERVANT

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS