July 4, 2018

Saudi Aramco plans to change the formula used to price its long-term crude oil sales to Asia later this year, multiple trade sources said on Wednesday.

The new formula will be based on the average monthly prices of Oman crude futures traded on the Dubai Mercantile Exchange and Platts cash Dubai prices.

The method will be used instead of the average of Oman and Dubai prices assessed by global pricing agency S&P Global Platts, the sources said, adding that the change could take place in October.

Saudi Aramco is expected to officially notify customers in Asia later on Wednesday, the sources said.

The oil company could, however, not be immediately reached for comment.