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Article: SAUDI ARABIA - Export Pricing & Marketing.
- Article from:
- APS Review Oil Market Trends
- Article date:
- October 29, 2001
CopyrightCOPYRIGHT 2001 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 any of their crude oils used as a marker for spot or forward trading. As a result, spot and forward trading in Dubai crude, as a marker for sour grades, is dwindling because production of this grade now is 170,000 b/d and is falling below 150,000 b/d in 2002.
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.
Saudi Aramco has a dynamic marketing unit, which applies formula pricing for crude oil sales adjusted monthly to the following benchmarks ...