Saudi Arabia to delay May crude prices until after OPEC+ meeting

Saudi Arabia will delay announcing its crude official selling prices for May until after a meeting between OPEC and its allies regarding possible output cuts, Reuters reported.

OPEC+, an alliance between The Organization of Petroleum Exporting Countries and Russia-led allies, were set to meet on April 6 to discuss a new deal to end the price war between Saudi Arabia and Russia but the the are now tentatively scheduled to virtually come together on April 9.

Reuters, citing a Saudi source, said the Kingdom will announce the May prices on Apri 10, after the outcome of the meeting.

“It is an unprecedented measure that has not been taken by Aramco before. May OSPs will depend on how the OPEC+ meeting concludes. We are doing what we can to make it (the meeting) successful, including taking this extraordinary step to delay the OSPs,” Reuters reported, quoting the source.

National oil company Saudi Aramco typically issues its OSPs by the 5th of each month, setting the trend for Iranian, Kuwaiti and Iraqi prices and affecting more than 12 million barrels of oil per day bound for Asia.

The previous OPEC+ agreement ended on March 31, with Russia refusing to an extension and deeper cuts, which led Saudi Arabia to offer significant discounts to customers for its crude, even as it promised to boost April output to record levels of 12.3 million barrels per day.

Oil prices hit an 18-year low on March 30 driven by a slump in oil demand and a ballooning supply glut in the face of coronavirus-triggered government lockdowns, which have nearly halted economic activity is many cities around the world.

Citing an OPEC source, Reuters earlier reported that OPEC and its allies are working on a global agreement for an unprecedented oil production cut equivalent to around 10 per cent of worldwide supply.