QatarEnergy has raised the price of its al-Shaheen crude oil blend for February loadings, signaling strong demand for the grade.
Sources familiar with the company’s pricing decisions told Reuters that the price of al-Shaheen will be $1.05 per barrel higher than the Dubai benchmark for February. This marks an increase of $0.32 per barrel compared to the price for January loadings.
The sources also reported that QatarEnergy has already sold three al-Shaheen cargoes at a premium to the Dubai benchmark, with each cargo priced $0.90 to $1.05 above the benchmark.
This price hike contrasts with recent decisions by Saudi Arabia, which has lowered oil prices for its key Asian market. Earlier this month, Saudi Aramco reduced the price of its Arab Light crude for January loadings by $0.80, cutting the premium from $1.70 to $0.90 per barrel.
The Saudi price cut was driven by weaker-than-expected demand from Asia, its primary export market. However, despite the price reduction, Saudi oil exports to China are expected to hit a three-month high in January as demand recovers.
In the first 11 months of this year, oil imports into Asia averaged 26.58 million barrels per day, according to energy columnist Clyde Russell, citing data from LSEG Oil Research. This marks a decrease of 310,000 barrels per day compared to the same period last year. The drop in demand is seen as a natural trend following the post-pandemic surge in demand, particularly in China.
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