Market tightness is the new byword on the global crude markets, though this given bout of supply scarcity (luckily) bears all the traits of a forethought and premeditated one. Saudi Aramco has sent a strong signal to the market with its February 2021 official selling prices, surpassing market expectations. All Asia-bound grades were hiked by 20-70 cents per barrel, with steeper increases in the light range (Arab Light saw the biggest month-on-month move). Combined with turnaround in Japan and China assumed to take place in February and Saudi Arabia‚Äôs unilateral commitment of cutting production by 1mbpd in February-March 2021, the assertiveness of Saudi Aramco might lead some refiners to rethink their regional purchases. In addition to the above, contango seems to have disappeared from the markets so storing crude in hefty storage tank farms no longer makes commercial sense. Saudi Aramco reacting to Dubai backwardation extending to its widest […]