Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Tuesday, Jun 18, 2024

Saudi Aramco Drops January's Arab Light Prices for Asia 

Saudi Aramco Drops January's Arab Light Prices for Asia 

Aramco announced that Saudi Arabia has dropped the January official selling price (OSP) for its flagship Arab Light crude for Asian buyers to a 10-month low.  
The price is $2.20 a barrel below official selling prices for December, so the demand outlook remains fragile.  

The largest oil exporter set the official selling price of Arab Light crude to northwest Europe at $0.10 lower than Brent crude in January, $1.80 less than its December price.  

The US selling price remained unchanged from last month at $6.35 above the Argus Sour Crude Index (ASCI) for January.  

OPEC+ decision and market stability 

The Organization of the Petroleum Exporting Countries and allies, including Russia, also known as OPEC+, maintained their previous crude output target during their Sunday virtual meeting.  

OPEC+ kept their oil production targets unchanged before the European Union's ban on Russian crude took effect, and the G7 imposed a maximum price on its prices, starting Monday. 

Oil prices rose on Monday after the OPEC+ decision, and in a positive sign of fuel demand from the largest oil importer in the world, as more Chinese cities relaxed COVID-19 restrictions at the beginning of the week.  

Brent crude futures settled down $2.89, or 3.4 percent, at $82.68 a barrel. West Texas Intermediate crude fell $3.05, or 3.8 percent, to $76.93 a barrel. Both benchmarks had earlier risen more than $2 before reversing direction.  

"The decision ... is not a surprise, given the uncertainty in the market over the impact of the Dec. 5 EU Russia crude oil import ban and the G7 price cap," said Ann-Louise Hittle, vice president of consultancy Wood Mackenzie told Reuters.  

"In addition, the producers' group faces downside risk from the potential for weakening global economic growth and China's zero COVID policy."  

Chinese business and manufacturing sectors, the second largest economy in the world, have been affected this year by the strict COVID-19 restrictions.  

Russian oil embargo 

The European ban prohibiting Russian crude oil imports by sea entered into force as of Monday, with limited exceptions for Hungary, Slovakia, and the Czech Republic.  

The EU and the G7 also agreed on Friday to cap the price of Russian crude oil at $60 a barrel, a policy aimed at Moscow's other customers, and it entered into effect on Monday, too.  

An EU document showed that the price cap would be reviewed every two months, using Russian oil prices provided by the International Energy Agency as a reference.  

Kremlin spokesman Dmitry Peskov told reporters that Russia is preparing a response to the decision of Western countries to impose a price ceiling on its oil.  

Peskov announced that a decision is being taken, and Russia would not recognize "any ceilings," adding that adopting such choices is "a step towards destabilizing the world energy market."  

Meanwhile, Japan implemented a price cap on Russian crude oil under the Foreign Exchange and Foreign Trade Law.  

Bloomberg stated, quoting the Japanese Finance Ministry of Finance, that Russian oil traded above the limit will be effectively banned, excluding crude oil imported from the Sakhalin-2 plant.

Related Articles

Hong Kong News
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.