Saudi Arabia’s state-owned Saudi Aramco is expected to announce sharp cuts in its official selling price differentials for light and heavier grades loading in November for Asian buyers, reflecting lower spot differentials last month and steeper contango in the Dubai market structure. Traders surveyed by Platts expect Aramco to lower the November OSP differential for Arab Light crude by $1-$2/b from October’s OSP of 10 cents/b over Platts Oman/Dubai average. A majority expect cuts between $1.50-$2/b in the Arab Light OSP differential. The first-month/third-month spread for Dubai crude averaged at minus $2.24/b last month, with the contango widening by $2.59/b from August. The Dubai market structure is understood to be a key component in the Saudi Aramco OSP calculations. Traders said Aramco may not fully reflect the weakness in the Dubai structure, especially after it cut its October OSP last month despite a stronger Dubai structure in August. Article […]