SINGAPORE: The Middle East market remained supported by competitive official selling prices (OSPs) with most grades trading at a premium.
But Saudi Arabia sent one of the strongest signals yet that it has no intention of cutting output in the face of sliding oil prices, saying it may even export more crude.
In an interview with a local newspaper, Saudi Arabia's oil minister said the kingdom is prepared to increase its oil output and claim a bigger market share to meet the demands of any new customers.
Saudi Arabia made steep cuts to its January OSPs, signalling it intends to fight for market share in Asia.
"Saudi barrels were already relatively competitive in the Asian market after recent OSP adjustments, therefore making the latest cut an indication that Saudi Aramco is pricing its crude in light of the pressured environment expected for the first quarter of 2015," analysts at JBC Energy said in a note.
Basra Light was traded at a premium of around 20 cents a barrel to its official selling price (OSP), traders said.
Trading for February cargoes were winding down with many traders away for Christmas.
DME OMAN
DME Oman for February settled at $59.68 a barrel, up $3.29, at 0830 GMT. This puts DME Oman at $1.21 a barrel below Dubai swaps, against a discount of 85 cents in the previous session.
MARKET NEWS
China's crude oil imports from Iran fell 2.6 percent in November from a year ago but were up more than half from October, customs data showed on Monday.
Comments
Comments are closed for this article.