Reuters cited unnamed sources familiar with the company’s pricing decisions as saying a barrel of al-Shaheen will in February cost $1.05 per barrel more than the Dubai benchmark. This will be $0.32 per barrel more than the price for al-Shaheen cargos for January loadings.
The Reuters sources also said that QatarEnergy had already sold three cargos of al-Shaheen at a higher premium to the Dubai benchmark, with the specific number for each cargo varying between $0.90 and $1.05 per barrel.
The move, if verified, would stand in stark contrast with Saudi Arabia’s recent oil price decisions, which have amounted to cuts for its key Asian market. The latest price cut was reported earlier this month, for January loadings.
Aramco lowered the official selling price for its flagship Arab Light blend from a $1.70 premium to the Oman/Dubai average for this month to a premium of $0.90 per barrel for January. Expectations for the price cut, as reported by Reuters earlier this month, ranged between $0.70 and $0.90 per barrel.
The move was prompted by weaker-than-expected demand from Saudi Arabia’s key oil export market: Asia. The Saudis are the biggest suppliers of oil to Asia and with demand disappointing, a move on pricing was all but certain to take place. Even so, Saudi Arabia oil exports to China in January are seen hitting a three-month high as demand rebounds.
Oil imports into Asia over the first 11 months of the year averaged 26.58 million barrels daily, energy columnist Clyde Russell reported, citing data from Reuters partner LSEG Oil Research. That’s 310,000 barrels daily lower than imports a year ago. One might argue that the demand dip is a natural development following the surge in demand after the lifting of the pandemic lockdowns, especially in China.
