09 December 2024: 09:30 GMT
As we expected, Saudi Arabia cut OSPs for Asia. They did the minimum we prophesised on Friday, cutting Light grade prices by 80c, while Medium and Heavy each received a 70c chop. Will that be enough to entice back Chinese buyers who had been going to the spot market and looking to other suppliers, such as West African producers in the past month. There could be more competition for China’s attention, however. As the Assad regime crumbles, Iran’s crude exports to its old Syrian ally are set to unwind. TankerTrackers spotted that a tanker set to deliver 750 kb of Iranian crude to Syria did a 180 turn in the Gulf of Suez. The cancellation of exports from Iran to Syria now that Iran’s pal Assad has been ousted will free up around 60 kb/d of crude, which will need a buyer from Iran’s reduced list of customers – more competition for the lacklustre Chinese demand?
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