Iran is said to be offering its main crude grade    to customers in Asia at the deepest discount in 14 years,    taking a cue from Saudi Arabia in trimming price differentials.  
    National Iranian Oil Co. cut its official selling price for    January shipments of light crude    to Asia to a discount of $1.80 a barrel below the regional    benchmark as Middle Eastern producers vie to keep selling in    the region, according to four people with knowledge of the    decision. An official at NIOCs crude-marketing department in    Tehran declined to comment.  
    Iran cut the differential to a discount from a premium of 13    cents a barrel to the average of the Oman and Dubai benchmark    crudes for December. The light crude grade hasnt sold at such    a steep discount since Bloomberg began tracking the countrys    official selling prices in March 2000.  
    Oil prices have collapsed since the Organization of    Petroleum Exporting Countries decided on Nov. 27 to maintain    its output target, fanning speculation that Saudi Arabia and    other members are determined to make North American shale    drillers and other producers share the burden of reducing    oversupply. Saudi Arabias state oil company prompted    speculation that the kingdom was seeking to preserve market    share when it lowered prices for November.  
    Expanding supplies from North American shale deposits coupled    with weakening demand growth in China,    the worlds second-largest oil consumer, helped push crude into    a bear market this year. Middle Eastern producers are    increasingly competing with cargoes from Latin America, North Africa and Russia    for buyers in Asia.  
    Saudi Arabian Oil Co. lowered the official selling price for    its Arab Light grade to Asia next    month to $2 a barrel less than a regional benchmark, the    company said by e-mail Dec. 4, marking the biggest discount    since Bloomberg began compiling data in June 2000. Saudi    Aramco, as the company is known, cut all differentials in    January for buyers in Asia and the U.S. and raised them for    customers in Europe.  
    Fellow OPEC members Iraq and Kuwait also cut selling prices to    Asia, on Dec. 8 and Dec. 10, respectively.  
    Iran deepened the discount for Iran Heavy    crude to $3.51 a barrel for January sales to buyers in    Asia, compared with a $1.66 discount for December, according to    the people, who asked not to be identified since the pricing    information is confidential. That cut puts Irans heavy crude    at the deepest discount December 2008.  
    Saudi Aramco set the discount for its comparable    Arab Medium crude at the deepest level since December 2008.  
    For Related News and Information: Deepest Saudi Oil Discount    Intensifies Fight for Asia Market Iran Said to Set Dec. Lt    Crude to Asia at 13cts Over Oman-Dubai  
Read the original:
Iran Said to Discount Light Crude to Asia to Deepest in 14 Years