Adds market analysis
State-controlled Saudi Aramco has reduced all but one of the official formula prices for its November-loading crude exports.
All prices have been cut with the exception of US-bound cargoes of Arab Extra Light, which have been kept unchanged at a $2.40/bl premium to the ASCI benchmark. November prices for Aramco's other crude grades have been trimmed by 10¢/bl on the month for US buyers.
Cuts were less dramatic for US-bound cargoes compared to other destinations as competing waterborne prices at the Gulf coast are elevated from demand in Europe. WTI fob Houston has averaged a $1.12/bl discount to Ice Brent so far in the November trade month, up by 33¢/bl compared to an average $1.45/bl discount during the same period of October trade.
Additionally, some production remains suspended for US medium sour Mars crude, which often competes with imports from the Mideast Gulf, after Hurricane Ida damaged key Shell-operated facilities in the US Gulf of Mexico.
Aramco meanwhile cut prices further to other destinations to maintain market share against competitive spot prices from west African and other Mideast Gulf producers.
For customers in Aramco's core Asia-Pacific market, the firm has reduced prices by 10-50¢/bl from October.
Prices for buyers in northwest Europe have been cut by 50¢-$1/bl, while Mediterranean customers will see reductions of 30-65¢/bl on a fob Ras Tanura and fob Sidi Kerir basis. Traders in northwest Europe and the Mediterranean had expected 40¢/bl month-on-month declines.
The price cuts coincide with another increase in Saudi Arabia's Opec+ crude production quota. The country's ceiling rises to 9.913mn b/d in November from 9.809mn b/d in October.
| Saudi Aramco crude official formula prices | $/bl | ||
| November | October | ± | |
| United States (vs ASCI) | |||
| Extra Light | 2.40 | 2.40 | 0.00 |
| Arab Light | 1.25 | 1.35 | -0.10 |
| Arab Medium | 0.55 | 0.65 | -0.10 |
| Arab Heavy | 0.10 | 0.20 | -0.10 |
| Northwest Europe (vs marker crude Ice Brent) | |||
| Extra Light | -1.80 | -0.80 | -1.00 |
| Arab Light | -2.40 | -1.70 | -0.70 |
| Arab Medium | -2.80 | -2.30 | -0.50 |
| Arab Heavy | -3.70 | -3.20 | -0.50 |
| Asia-Pacific (vs Oman/Dubai) | |||
| Super Light | 3.05 | 3.15 | -0.10 |
| Extra Light | 1.80 | 2.00 | -0.20 |
| Arab Light | 1.30 | 1.70 | -0.40 |
| Arab Medium | 1.05 | 1.45 | -0.40 |
| Arab Heavy | -0.10 | 0.40 | -0.50 |
| Mediterranean fob Ras Tanura (vs marker crude Ice Brent) | |||
| Extra Light | -1.10 | -0.80 | -0.30 |
| Arab Light | -2.30 | -1.80 | -0.50 |
| Arab Medium | -3.10 | -2.50 | -0.60 |
| Arab Heavy | -3.80 | -3.20 | -0.60 |
| Mediterranean fob Sidi Kerir (vs marker crude Ice Brent) | |||
| Extra Light | -0.50 | -0.15 | -0.35 |
| Arab Light | -1.70 | -1.15 | -0.55 |
| Arab Medium | -2.50 | -1.85 | -0.65 |
| Arab Heavy | -3.20 | -2.55 | -0.65 |
| Source: Saudi Aramco | |||
