Saudi OSPs slashed

Crude prices remained supported despite a weak data release in the US, as protests in Kazakhstan, joined by oil workers, could have consequences on the 1.6 mb/d nation’s output. In the US, gasoline stocks jumped by 10 mb, as demand cratered during the Christmas break (both domestically and export demand), while refiners continued to run harder. Combined with a 4.4 mb build in distillates, this puts the US refined product market on a stronger footing to start 2022. The Saudi OSP revealed an interesting pattern, as Q1 demand is expected to slow down. Saudi Aramco likely cut its crude prices by 1 $/b for all Asian customers, which will likely reduce the amount of spot buying, as Asian customers nominate their full contractual volumes in February to take advantage of the improved pricing.