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6 Jan 2015
Saudi discounts oil premium for its European consumers – KBC
FXStreet (Barcelona) - The KBC Bank Research Team shares that Brent extended its losses today, but prices remain untouched by Saudi Arabia’s declision to slash the premium on oil sold for its European consumers.
Key Quotes
“Today in early trading, the front-month contract on Brent extends yesterday’s large loss and at the time of writing of this note is trading below 52 USD/bbl.”
“News that Saudi Arabia increased a premium on oil sold to Asia had no significant impact on prices because the kingdom slashed the premium for European consumers at the same time. The decision to adjust premiums could therefore have stemmed from Saudi’s assessment of the market situation (i.e., the development of spread between Brent and Oman/Dubai) rather than it had been a signal of a change in recent kingdom’s policy.”
Key Quotes
“Today in early trading, the front-month contract on Brent extends yesterday’s large loss and at the time of writing of this note is trading below 52 USD/bbl.”
“News that Saudi Arabia increased a premium on oil sold to Asia had no significant impact on prices because the kingdom slashed the premium for European consumers at the same time. The decision to adjust premiums could therefore have stemmed from Saudi’s assessment of the market situation (i.e., the development of spread between Brent and Oman/Dubai) rather than it had been a signal of a change in recent kingdom’s policy.”