Wednesday, Jan 04, 2012
-- OSP cuts may exceed market expectations, sources say.
-- Arab Light OSP may be set at $2.05 above average of Oman-Dubai assessments for February, they say.
(Adds possible cuts to OSP of other grades from fourth paragraph)
Gurdeep Singh
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Saudi Arabian Oil Co. may announce deeper cuts to its February crude-oil official selling prices to Asia than the market expects, two oil industry sources said Wednesday.
Saudi Aramco executives were not immediately available to comment.
The oil major may set the Arab Light OSP at $2.05 above the average of Oman and Dubai assessments for February term supply to Asia, down $2.10 from the previous month, said the people, who did not wish to be identified.
The OSP for Arab Super Light may be cut by $1.80 to $4.10 a barrel above Oman-Dubai assessments, while the Arab Extra Light OSP may be cut by $2.10 to $3.55 a barrel above Oman-Dubai, the people said.
Those reductions would be significantly deeper than what the market expects, traders said. Saudi Aramco's increase in January OSP last month was also higher than expected, hurting demand from Asia at a time when refiners faced weak margins.
Arab Medium OSP may be cut by $2 to 75 cents a barrel above Oman-Dubai, while Arab Heavy crude may be cut to 45 cents a barrel discount to Oman-Dubai, a reduction of $1.80 from January, the people said.
-By Gurdeep Singh, Dow Jones Newswires; 65-6415 4064; gurdeep.singh@dowjones.com
(END) Dow Jones Newswires
04-01-12 0953GMT
