Saudi production continues to decline
September 01, 2014
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Saudi Arabia has cut OSPs to its Asian buyers for its main grades, for the second consecutive month in September.
Saudi production has been declining, and could fall further given the stiff competition from Iraq, Iran and Libya. Asian crude demand has also remained sluggish, even though activity typically ramps up in Q3, post-maintenance. If the Saudis continue to discount OSPs in order to maintain export volumes, global crude prices are likely to come under further pressure.
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