Saudi Oil Market Fight Shifting to U.S. as Asia Prices Rise – Bloomberg.
Saudi Arabia’s increase in oil prices for Asia signals the world’s biggest crude exporter is shifting the focus of its fight for market share on U.S. buyers.
While Saudi Arabian Oil Co. boosteddifferentials for supplies to Asia next month after cutting some November prices to the lowest in almost six years, American buyers will get another month of reductions. The Middle East producer isn’t prepared to surrender sales in the U.S., where a shale boom has lifted output to the highest in more than 30 years, according to Idemitsu Kosan Co., Japan’s third-largest refiner, and Elements Capital Inc., a Tokyo-based hedge fund that focuses on energy.
Global oil prices slid into a bear market last month on speculation the biggest OPEC producers were discounting their crude to maintain market share, resisting calls to cut output amid slowing demand growth. West Texas Intermediate futures slumped to the lowest in three years yesterday on signs the Saudis are prepared to go even lower to shore up U.S. demand.
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