State-controlled Saudi Aramco is expected to delay the release of official formula prices for its September-loading crude exports to 9 August at the earliest, several Asia-Pacific refiners said.
The company typically publishes its official prices in the first five days of the month that precede loading. But Aramco has postponed its price releases in recent months, to accommodate Opec+ meetings or to implement production cut decisions.
Most term lifters of Saudi Aramco crude in Asia-Pacific said the delay in releasing the September formula prices is likely due to the Eid al-Adha holidays in Saudi Arabia that will end on 8 August. But some traders say there is talk that the delay could be because Aramco may be mulling the possibility of making deeper-than-expected cuts to its September formula prices. Market participants are expecting Aramco to cut its September crude formula prices for customers in Asia-Pacific by around 50-60¢/bl, although some buyers are hoping Aramco will make larger cuts of up to $1/bl after taking into account the collapse in demand in the second half of July.
Other rival producers in the Mideast Gulf typically release their official formula prices after Aramco, and often match Aramco's month-on-month adjustments to ensure the competitiveness of their crude exports.
