On July 6, Saudi Arabia announced a comprehensive increase in the August official selling price (OSP), such as increasing the price of Arabian light crude oil sold to the Asian market by 80 US cents/barrel, a premium of US$2.7 to the average price in Dubai, Oman.
You must know that Saudi Arabia’s official selling price will set the tone for oil prices in Kuwait, Iran and other countries, affecting more than 12 million barrels per day of crude oil shipped to Asia. Shortly after the Saudi announcement, Kuwait followed suit.
The latest market news on July 9, Kuwait will increase sales in August Crude oil prices in Asia are set at a premium of US$2.05/barrel to the average price in Dubai, Oman. It should be mentioned that the country has previously announced an increase in the price of crude oil sold to Asia in July, which also means that Asian buyers will need to spend more to purchase Kuwait oil.
Saudi Arabia, Kuwait and others have “targeted” the Asian market because Asia is the region with the greatest oil consumption potential in the world, and 37% of the world’s oil is used in Asia. occurring. The International Energy Agency (IEA) estimates that by 2025, 90% of new global oil demand will come from Asian buyers.
Among Asian crude oil buyers, China’s demand for crude oil is growing . Take Kuwait as an example. Data show that in May, Kuwait’s oil exports to China hit a record high in the past four and a half years – 19.38 million barrels, with an average of 661,000 barrels per day. In addition, according to official data, from January to May this year, my country imported 221 million tons of crude oil, a year-on-year increase of 2.3%.
Even in 2020 when global oil demand fell, Kuwait exported 2,750 tons of oil to the Chinese market. However, last year, our country imported a total of 542 million tons of oil, and Kuwait’s share only accounted for 5%. In other words, Kuwait’s increase in the price of crude oil sold to the Asian market will have less impact on China.
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