Deep Cuts to October Saudi Crude OSPs for Asia in Line With Expectations

The deep cuts in Saudi Aramco's official selling price differentials for its crude grades loading in October and bound for Asia were largely within expectations, traders said Thursday, September 4, with some saying the cuts were bigger than expected.

All of Aramco's grades, except Arab Heavy, saw their differentials slashed to levels last seen in November 2010, with the Arab Heavy differential falling to a level last seen in January 2009.

"The cut is bigger than our expectations for each [of the] grades; [Saudi crudes] look more competitive than ADNOC grades," a trader at a Japanese refiner said.

A trader at an oil major said the cuts were "within expectations."

(platts.com)