This is far closer to the 45-cent advantage the Europeans enjoyed for August cargoes and shows that the Saudis in general do appear to use the OSPs as a way to compensate for variances in the prices of the underlying crudes.
But the reversal of the discount to Asian refiners does prompt the question; why was it given in the first place?
At the time the OSP was announced last month, the market had been expecting a cut in the premium to Dubai for Asian refiners, and this was duly delivered.
The reasoning at the time was that weak demand was dragging down spot crude prices, and profit margins for making certain products, such as fuel oil, had weakened.
Iran and India will be signing a new agreement on a barter trade, Iran's Energy Minister Majid Namjoo said, Mehr reported.
Namjoo explained that Iran has decided to use India's sources for realizing projects in the Islamic Republic, instead of receiving money from oil shipments.
Iran's energy minister noted that Iran has proposed a deal to India, and the negotiations with Indian officials are scheduled to take place in the near future.
Namjoo added that Iran will prepare project plans and will showcase them in India after an agreement has been signed.
Due to numerous sanctions imposed on Iran, the Islamic Republic has been experiencing tough times receiving money from its oil exports. In particular Iran is unable to receive Euros and U.S. dollars for its crude.
According to Reuters, India's oil imports from Iran fell by more than 40 percent in July from June and a year ago. India currently is world's fourth-largest oil importer.
Refiners in India, Iran's biggest oil client after China, have struggled to find insurance and shipping for imports since the European Union brought in sanctions on July 1 banning most major insurance firms from covering Iranian oil shipments.
Source: World Oil. All rights received.