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Saudi Arabia cuts December light crude costs for Asia

Leading oil exporter Saudi Arabia has actually cut the cost for the flagship Arab light crude it sells to Asia in December by 50 cents to $1.70 a barrel above the Oman/Dubai typical, Saudi Aramco stated in a declaration on Tuesday.

The reduction is

broadly in line

with expectations, as sources at Asian refineries had actually stated they expected the cost to fall by 30 cents to 50 cents.

On Sunday, the Company of the Petroleum Exporting Countries and their allies, a group known as OPEC+, said they would push back

a production walking

by a month from December as weak demand and increasing non-OPEC supply depress markets.

Aramco sets its crude costs based on suggestions from customers and after determining the modification in the value of its oil over the past month, based upon yields and product rates.

Aramco also set the Arab Light OSP to Northwest Europe at minus $0.15 versus ICE Brent, a boost of 30 cents per barrel from November, according to a prices file.

It hiked its OSPs to both Northwest Europe and the Mediterranean by 30 cents per barrel throughout the board.

For buyers in the United States, the Arab Light OSP was cut by 10 cents to plus $3.80 versus ASCI.

(source: Reuters)