Saudi Arabia: Oil Pricing Saudi Aramco Alters Benchmark for Asian Crude Oil Market
The government-owned company has undertaken the move to increase the dependability of its crude oil pricing.
Dhahran/Saudi Arabia – Saudi Aramco has recently announced that it is adjusting its Asia crude oil pricing marker in an effort to increase the overall reliability of its crude oil pricing. The company’s long-standing price marker was the average of Platts Dubai and Platts Oman assessments. The firm’s new Asia marker will replace Platts Oman with Dubai Mercantile Exchange (DME) Oman effective October 1, 2018, creating a hybrid between the two major Asia benchmarks.
Saudi Aramco states that it is rebalancing its Asia marker to ensure that it is underpinned by a broad and vibrant marketplace. The inclusion of the DME Oman price complements the existing Platts Dubai price to provide its customers with better visibility into price dynamics. The firm’s main objective is to ensure that its marker is market-reflective, well-regulated, and predictable. Saudi Aramco is confident that the DME Oman price, combined with the Platts Dubai price will serve the purpose.