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Saudi Arabia to Switch Crude Oil Pricing for European Refiners

  • Saudi Aramco to move in July to ICE settlement from ICE Bwave
  • Saudis say benchmark tweak will allow better hedging in Europe
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Photographer: Angel Navarrete/Bloomberg

Saudi Arabia is to tweak the benchmark it uses to sell its crude in Europe, in a concession to refiners in the region that have long complained about their ability to hedge using the current measure.

Saudi Arabian Oil Co., as the country’s state-owned company is formally known, will sell crude into Europe, Africa and Latin America based on ICE Brent Settlement, a one-day close for the benchmark, rather than the current system of using the daily weighted average of Brent trades. Both are published by ICE Futures Europe Ltd.