Qatar Petroleum ... cutting prices
Qatar joins Mideast oil producers in deep price cuts
SINGAPORE, October 14, 2014
Qatar has become the latest Middle East oil producer to cut prices by more than $1 a barrel in an attempt to revive demand for its crude in Asia.
Qatar, one of the smallest producers in Opec, has cut the September price differential for its Marine crude to Dubai by the widest margin since January 2008, following deep price cuts from Saudi Arabia earlier this month.
Qatari oil lost its competitiveness against other Gulf grades in recent months as its official selling prices (OSPs) were comparatively higher and did not reflect spot market trends, traders said.
Qatar faced further pressure from a slowdown in Asia's crude demand and a large influx of competing grades from the Atlantic Basin and Latin America.
"They have awakened to reality," a trader with a North Asian refiner said. Benchmark Brent has tumbled nearly 24 per cent since mid-June on concerns over abundant supply and muted demand growth.
Qatar has set its September retroactive official selling price (OSP) for its Marine crude at $94.95 a barrel, down $6.75 a barrel from the previous month, Qatar News Agency said.
The discount for Qatar Marine's official selling price (OSP) to Dubai widened by $1.49 to $1.52 a barrel, the biggest discount since January 2008, according to Reuters data. The price cut was in line with the large discounts seen for November-loading Qatar Marine cargoes sold last month.
The Arab state also set its September Qatar Land crude OSP at $96.95, down $6.25 from the previous month. This was equivalent to a 99-cent cut for Qatar Land's premium to Dubai to 48 cents a barrel. -- Reuters
