Saudi OSPs slashed

Crude prices remained supported despite a weak data release in the US, as protests in Kazakhstan, joined by oil workers, could have consequences on the 1.6 mb/d nation’s output. In the US, gasoline stocks jumped by 10 mb, as demand cratered during the Christmas break (both domestically and export demand), while refiners continued to run harder. Combined with a 4.4 mb build in distillates, this puts the US refined product market on a stronger footing to start 2022. The Saudi OSP revealed an interesting pattern, as Q1 demand is expected to slow down. Saudi Aramco likely cut its crude prices by 1 $/b for all Asian customers, which will likely reduce the amount of spot buying, as Asian customers nominate their full contractual volumes in February to take advantage of the improved pricing.

Share this news :

You might also read :

May 24, 2022

Spot prices up on lower pipeline supply

European spot gas prices increased yesterday, supported by lower pipeline supply. Indeed, Norwegian flows dropped to 305 mm cm/day on average (compared to 325 mm…
January 11, 2022

Towards a Fed rate hike in March

The trends that have been at work for several days were first accentuated yesterday on the markets: the US 10-year yield exceeded 1.8% and the…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?