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Saudi Arabia may cut oil prices in Asian markets

Greater Russian competition,weaker Asian demand, putting downward pressure on crude oil prices for Asian refineries.


July 2, 2010 9:49 by

Saudi Arabia is expected to cut crude oil prices for Asian bound oil, on weaker demand from refiners, and increased competition from Russia, Reuters reported today.

In a Reuters poll, four of seven refiners and trader told the new service that light grades are expected to fall more than medium and heavy.

I expect Saudi to cut differentials across the board again, as the sentiment for both light and medium grades is not so good,” Reuters said, quoting a trader with a Northeast Asia refiner.

Saudi Arabia has lowered its July official selling prices for its crudes to Asia, Reuters added, noting that prices for Arab Medium and Heavy fell to their lowest in nearly a year and a half. But analysts say the price drop has failed to spur demand.


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