Saudi Arabia faces a pricing dilemma between supporting prices in line with the Opec+ historical deal to cut output and ensuring there is enough buying interest for the kingdom’s crude oil in an environment of dismal demand. Aramco’s latest official selling prices suggest it has chosen to prioritise market share in the key Asia-Pacific region, entrenching the price war that emerged after the collapse of last month’s Opec+ meeting.
Written and presented by: Alejandro Barbajosa, Vice-President, Crude, Middle East and Asia-Pacific.