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Article: SAUDI ARABIA - Saudi Export Pricing & Marketing.
- Article from:
- APS Review Oil Market Trends
- Article date:
- October 8, 2007
CopyrightCOPYRIGHT 2007 Input Solutions. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Saudi Arabia and the other main Middle East oil exporters still refuse to have their crudes used as a marker for spot or forward trading. As a result, spot and forward trading in Dubai, as a marker for sour grades, is dwindling because production of this grade has fallen below 100,000 b/d and the trade is lacking in liquidity. There is a problem with Oman crude replacing Dubai as a marker (see above).
Saudi Aramco, whose pricing system is followed by most exporters in the Middle East, insists that the buyers of its crudes are refiners and will under no circumstances be resellers. It has a dynamic marketing unit, which applies formula pricing for crude oil sales ...