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Saudi Crude Prices To US Increased, Light Crudes Raised And Heavies Decreased Elsewhere
Saudi Aramco on 2 November announced to customers its monthly crude price formula adjustments for December. All prices to the US were increased, as was the price of most light crudes to all destinations. For Europe and Asia, the price of all medium and heavy crudes was decreased. Saudi Aramco’s price formulas are for the most part determined by the recent performance of competing crudes in regional spot markets.
To The US
For December deliveries to the US, where Saudi Aramco uses WTI as a pricing reference, the price of Arab Light was increased by $0.85/B, Arab Medium by $0.50/B, Arab Heavy by $0.05/B and Arab Extra Light by $1.25/B. The price of Gulf Coast sour crudes has increased in recent weeks against WTI (which will cease to be the marker crude used by Saudi Aramco in January 2010, when it switches to the Argus Sour Crude Index – MEES, 2 November). Mars crude rose to WTI minus $3.00/B in early November compared to WTI minus 3.90/B in early October. Poseidon crude increased to WTI minus $2.90-3.10/B last week after trading at WTI minus $3.80/B several weeks earlier.
To Northwest Europe And The Mediterranean
For December deliveries to Northwest Europe and the Mediterranean, where the pricing reference is the Brent Weighted Average (BWAVE) quoted value, Saudi Aramco raised the price of its extra light crude and reduced the medium and heavy grades. For Northwest Europe, Arab Light was marked down by $0.20/B, Arab Medium by $0.35/B and Arab Heavy by $0.65/B. The price of Arab Extra Light was increased by $0.05/B. For December deliveries in the Mediterranean, the prices of Arab Light and Arab Extra Lights were increased by $0.10/B and $0.15/B respectively. Arab Medium was unchanged and Arab Heavy was reduced by $0.35/B. Urals for Northwest Europe traded in a range of Dated Brent minus $0.45-0.50/B during the month of October with Mediterranean trades slightly higher.
To Asia
For December deliveries to Asia, where the Oman/Dubai average is used as the pricing reference, Saudi Aramco raised the price of Arab Light by $0.35/B, Arab Extra Light by $0.85/B and Arab Super Light by $0.90/B. Arab Medium was marked down by $0.10/B and Arab Heavy was reduced by $0.40/B. Murban traded at ADNOC minus $0.10-0.20/B in late October, while Oman was selling at Dubai minus $0.15-0.20/B since mid-month.
The formulas for December 2009 and the previous 12 months for deliveries to the US, Europe and the Far East – on an FOB Saudi Arabia basis, 50 days after B/L for the US, 40 days after B/L for NW Europe, and B/L date to the Far East – are as follows ($/B):
US (Price Reference WTI)
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2009
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2008
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Dec
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Nov
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Oct
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Sep
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Aug
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Jul
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Jun
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May
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Apr
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Mar
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Feb
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Jan
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Dec
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Arab Light (32-36°)
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-3.75
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-4.60
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-2.90
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-1.10
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-3.70
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-2.50
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-2.95
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-2.25
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+1.90
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+1.00
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-2.00
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-4.80
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-4.60
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Arab Medium (29-32°)
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-5.20
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-5.70
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-4.00
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-2.40
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-4.90
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-3.80
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-4.10
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-3.85
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+1.15
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0.00
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-4.20
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-7.75
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-7.75
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Arab Heavy (<29°)
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-6.15
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-6.20
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-4.45
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-3.10
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-5.50
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-4.75
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-4.85
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-4.85
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+0.65
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-0.60
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-5.30
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-9.75
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-10.15
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Arab Extra Light (36-40°)
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-2.10
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-3.35
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-1.75
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+0.25
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-2.45
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-1.35
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-1.95
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-0.80
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+2.35
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+2.15
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-1.60
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-3.10
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-2.60
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North West Europe (Price Reference Brent Weighted Average)
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Dec
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Nov
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Oct
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Sep
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Aug
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Jul
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Jun
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May
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Apr
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Mar
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Feb
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Jan
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Dec
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Arab Light (32-36°)
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-1.80
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-1.60
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-1.80
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-2.30
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-1.60
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-1.70
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-2.80
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-4.05
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-2.45
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-3.75
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-5.45
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-5.65
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-4.15
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Arab Medium (29-32°)
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-3.00
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-2.65
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-2.95
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-3.40
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-2.75
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-2.70
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-3.85
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-5.00
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-3.10
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-4.55
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-7.20
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-7.70
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-7.20
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Arab Heavy (<29°)
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-3.45
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-2.80
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-3.20
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-3.65
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-3.20
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-3.15
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-4.30
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-5.80
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-3.70
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-5.25
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-8.30
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-9.30
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-9.20
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Arab Extra Light (36-40°)
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-1.05
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-1.10
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-1.35
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-1.60
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-0.95
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-1.05
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-2.10
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-2.70
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-2.00
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-2.90
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-3.65
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-2.95
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-1.15
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Mediterranean (Price Reference Brent Weighted Average)
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Dec
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Nov
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Oct
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Sep
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Aug
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Jul
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Jun
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May
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Apr
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Mar
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Feb
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Jan
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Dec
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Arab Light (32-36°)
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-1.80
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-1.90
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-1.90
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-1.55
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-1.45
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-1.65
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-3.05
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-3.05
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-2.15
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-3.90
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-5.00
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-5.00
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-4.00
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Arab Medium (29-32°)
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-2.80
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-2.80
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-3.25
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-2.65
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-2.70
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-2.80
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-4.30
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-4.65
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-3.20
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-5.20
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-6.80
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-7.30
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-6.80
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Arab Heavy (<29°)
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-3.60
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-3.25
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-3.70
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-3.20
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-3.30
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-3.25
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-4.95
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-5.55
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-3.80
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-6.00
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-8.10
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-9.10
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-9.00
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Arab Extra Light (36-40°)
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-0.85
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-1.00
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-1.00
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-0.80
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-0.65
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-1.00
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-2.20
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-1.70
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-1.00
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-1.90
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-2.10
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-1.80
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-0.90
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Far East (Price Reference Oman/Dubai)
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Dec
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Nov
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Oct
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Sep
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Aug
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Jul
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Jun
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May
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Apr
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Mar
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Feb
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Jan
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Dec
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Arab Light (32-36°)
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+0.50
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+0.15
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+0.60
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-0.25
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+1.50
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+1.40
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+1.00
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+0.80
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+0.90
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+0.25
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-0.45
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-0.85
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-1.25
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Arab Medium (29-32°)
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-0.55
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-0.45
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-0.30
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-1.20
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+0.30
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+0.60
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+0.15
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-0.50
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+0.50
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-0.50
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-1.90
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-3.10
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-3.65
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Arab Heavy (<29°)
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-1.45
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-1.05
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-0.90
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-1.85
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-0.45
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-0.15
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-0.70
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-1.85
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-0.65
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-1.95
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-3.90
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-5.80
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-6.30
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Arab Extra Light (36-40°)
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+1.25
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+0.40
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+0.85
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-0.05
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+1.90
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+1.70
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+1.25
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+1.55
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+1.55
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+1.20
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+0.85
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+1.15
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+0.50
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Arab Super Light (>40°)
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+1.30
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+0.40
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+1.10
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+0.10
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+2.30
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+2.20
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+1.80
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+3.10
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+2.80
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+2.15
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+1.15
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+1.15
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-0.35
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© Copyright MEES 2009.
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