OSPs to be announced once OPEC+ reaches decision
Aramco to issue OSPs on June 7
Asia crude OSPs seen hiked by $2-$5/b: survey
Singapore — Key Middle East oil exporter Saudi Aramco has adjusted its timeline for the issuance of its July crude official selling prices in lieu of ongoing OPEC+ discussions, and tentatively expects to issue the OSPs on June 7, several sources told S&P Global Platts on June 5.
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"No chance on OSPs yet, on Sunday I would suggest," a crude trader based in Singapore said.
Aramco is "largely waiting for OPEC+" talks to conclude before making a decision on pricing, the first source said, adding that "no one wants to release prices before a conclusion from OPEC+ -- that's a risk no one wants to take in case anything happens that goes against your pricing."
The update came as OPEC+ talks dragged on through the week to June 5, which is the date Aramco was initially expected to release its July crude prices to stakeholders.
Member countries are currently in the throes of negotiating quota compliance -- with Iraq in the spotlight -- and expect to settle their differences before heading into a final meeting, the exact date for which remains unclear. It was initially scheduled for June 9-10, then proposed for June 4, with some market sources citing a possible official meeting for June 6.
July OSPs issued by Saudi Arabia, UAE, Kuwait, Qatar, Iraq and Iran are expected to be hiked in a general range between $2/b and $5/b, results from S&P Global's monthly OSP survey in Asia showed on June 2.
Aramco's monthly official crude prices are a key calendar marker in the crude trading industry due to the entity's position as the leading oil producer in the Middle East, not to mention Saudi Arabia's crucial role in OPEC+ production cuts.
Aside from providing refineries with a price point to start valuations for each trading cycle, Aramco's prices are also keenly studied by other Middle East producers when issuing their own OSPs each month.
Several producers exporting crude grades comparable with the five Arab streams shipped to Asia, typically follow Aramco's lead in doling out price cuts or hikes to customers.
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OPEC+ indecision delays Middle East official crude selling price timeline - S&P Global
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