Page 17 - MEOG Week 23

MEOG n e W s I n br I ef MEOG

Iran flies in COVID-19 to extend a rally in oil while they also limit
P o LIC y own, adding weight to efforts by producers
Saudi makes largest oil aid to firm alliance with supply.
Government-owned producer Abu Dhabi
price increase in 20 years Venezuela National Oil Co. (ADNOC) raised July
pricing for its flagship grade by $5.45 a barrel,
saudi Arabia made some of the biggest price Iran on June 8 continued strengthening ties according to a statement on Monday.
increases for crude oil exports in 20 years, with a fellow foe of the Us, Venezuela, with Murban swung to a premium over the
doubling down on its strategy to bolster the the delivery of humanitarian aid to assist benchmark from a discount for the first time
oil market after OPEC+ producers extended Caracas in battling the country’s coronavirus since March, when saudi Arabia sparked a
output cuts. (COVID-19) outbreak. brief if devastating price war.
The increases for saudi crude oil erase The growing cooperation of Iran with Crude markets have tightened since the
almost all of the discounts that the Kingdom a country in the backyard of the Us is an OPEC+ alliance agreed in April to make
made during its recent price war with Russia. increasing thorn in the side of the trump unprecedented cuts in output as demand
The sharp price increases show that saudi administration. Iran, struggling to sell plunged amid the coronavirus. The producers,
Arabia is using all the tools at its disposal meaningful quantities of oil and petroleum including the United Arab Emirates, of which
to turn around the oil market after prices products because of heavy Us sanctions, Abu Dhabi is the capital, decided on saturday
plunged into negative territory in April. has lately become an emergency supplier to extend those cuts for another month
saudi Arabia sells its crude oil at a of gasoline to fuel-starved Venezuela. The through July.
differential to oil benchmarks, announcing Venezuelans have been left unable to produce Brent crude, down about 37 per cent this
every month the discount or premium it’s fuel because of the ill-effects of Us sanctions year, has clawed its way back to more than $40
charging to global refiners. The so-called on the maintenance of their refining industry a barrel this month.
official selling prices help set the tone in the amid a growing economic crisis. saudi Arabia, de facto leader of the
physical oil market, where actual barrels “Right now, what we are receiving [via Organization of Petroleum Exporting
change hands. flights from Iran] is different types of Countries, increased its pricing on sunday,
With China’s demand for crude oil rising, testing kits,” Venezuelan planning minister exceeding market expectations and causing
the saudis are raising prices. The month-on- Ricardo Menendez said on state television, refiners to worry about their profit margins.
month increase in the official selling price while standing on a runway at the country’s state-run saudi Aramco sees “good
for flagship Arab Light crude to Asia, which Maiquetia airport near what appeared to be indicators that demand is coming back and
accounts for more than half of saudi oil sales, boxes piled on pallets. thriving,” saudi Energy Minister Prince
is the largest in at least 20 years. saudi Aramco Iranian ambassador to Venezuela, Abdulaziz bin salman said on Monday at a
raised Arab Light to Asia by $6.10 U.s. a Hojjatollah soltani, said: “today we are seeing news briefing.
barrel to a premium of 20 cents U.s. over the the arrival of these materials to strengthen Aramco is the first Persian Gulf producer
benchmark. Venezuela in its fight against coronavirus.” to announce pricing each month, and it
tighter crude supply is helping repair bne generally sets the trend for roughly 14 million
an oil market battered by the coronavirus. barrels a day of crude exports from the region.
Unprecedented output cuts led by the saudis Abu Dhabi follows Saudis in The saudi increases for July all but erased the
and Russia boosted prices in May, and the pricing cuts and discounts that the producer
OPEC+ group decided saturday to extend raising crude prices amid offered during the earlier price war.
those limits through July. Brent crude, down ADNOC first began publishing forward
36% this year, has clawed back some of its OPEC+ cuts pricing for sales in March as the pandemic
losses and ended trading last Friday at more was crippling demand for crude.
than $40 U.s. a barrel. Abu Dhabi boosted pricing for its main Murban for March sold at a $1.88 premium
menafn Murban crude grade one day after saudi over the regional benchmark before plunging
Arabia posted sharply higher prices of its to discounts. For July, it will sell at a $1
premium.
The UAE is OPEC’s third-largest producer,
and Abu Dhabi holds most of the country’s
crude.
GULf bUsIness

G as
Iran expects gas flows to

Turkey to resume by mid-

July

Iran anticipates that its gas exports to
turkey—stalled since March 31 after a

Week 23 10•May•2020 www. NEWSBASE .com P17