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Aramco Trading to join Platts oil pricing process in Asia

By Reuters

By Florence Tan

SINGAPORE -Aramco Trading Company (ATC) will be participating in S&P Global Platts’ price assessment process for crude cargoes in Asia, the price reporting agency said on Wednesday.

Platts said in a notice that it had reviewed the trading arm of the world’s top oil exporter Saudi Aramco, and would consider information from ATC in the Asia Market on Close (MOC) price assessment process for Asia crude cargoes.

Some industry players have raised concerns about a potential conflict of interest as ATC is wholly owned by Saudi Aramco and the Platts Dubai crude market structure is used by the world’s top oil exporter to set monthly prices for millions of barrels of Saudi crude sold in Asia.

Others think sellers should share the platform with buyers.

“I believe it is a balance. Buyers are always in MOC and it’s time for a seller to be (in MOC too),” an industry source said.

Platts declined to comment. Saudi Aramco and ATC did not respond to a request for comment.

ATC handles crude procurement and sales of oil products from joint-venture refineries in Asia and does third-party trading. The company is already participating in the MOC processes for oil products trading in Asia.

Trading activities on the Asia MOC platform for Middle East crude picked up this month with TotalEnergies and Gunvor purchasing nine cargoes so far.

Reuters competes with Platts in the provision of news and pricing information about the oil market.