Top oil exporter Saudi Arabia will probably lower the official selling prices for heavy and medium grade crudes that it sells to Asia in December, driven by weakening product margins and depressed demand, a Reuters poll showed.
The producer may lower the December official selling price (OSP) for Arab Heavy by 50 cents from the previous month while that for Arab Medium may be cut by 15 cents, according to the median estimates of five traders and refiners.
"The margins are not looking good and the Persian Gulf (spot) crude market has come off a lot," said a senior trader with a North Asian refiner. "Prices will have to be adjusted lower."
The Asian spot market for Middle East crude for December cargoes was more subdued from the previous month, which had seen premiums on light and medium grades jump to multi-month highs.
Premiums on Middle East grades eased because of a sharp spike in OSPs last month, traders said. (CRU/M)