LAUNCESTON, Australia, Dec 3 (Reuters): Saudi Arabia clawed back market share of Asia's crude oil imports in November, while Russia surrendered some of its barrels in what may be an early sign of a shift in market dynamics.
Asia's imports from Saudi Arabia, the world's biggest crude exporter, rose to 5.83 million barrels per day (bpd) in November, up from 5.28 million bpd in October, according to data compiled by LSEG Oil Research.
Meanwhile Russia's supplies to Asia, the top-importing region, dropped to 3.51 million bpd in November, down from October's 3.96 million and the lowest since January, according to LSEG.
The data show that Asia's imports from Saudi Arabia went up by 550,000 bpd in November, while Russia's dropped by 450,000 bpd.
The swing to Saudi Arabian barrels from Russia came even as the kingdom's state-controlled oil producer, Saudi Aramco, increased the official selling prices OSPs for its crude to Asian customers for November-loading cargoes.
Aramco's benchmark Arab Light grade was increased by 90 cents a barrel to a premium of $2.20 over the regional benchmark Oman/Dubai average for November.
The increase did come after the premium had dropped to the lowest in nearly three years in October, and was seen at the time of the increase as a reflection that Asia refining margins were recovering.
The profit from refining a barrel of Dubai crude at a typical Singapore refinery rose to $6.62 on Nov. 29, and has risen 240% since hitting $1.95 on Oct. 10, when the current uptrend started.
Notwithstanding the increase in Aramco's November OSPs, Saudi crude has become more price competitive in Asia relative to other grades, including Russia's Urals, which is the main crude exported from its western ports.
Cash Dubai crude ended at $71.83 a barrel on Nov. 29, a premium of $4.36 over Russia's Urals, which closed at 67.47.
This premium is lower than it was for much of the recent months, when it has traded above $5 a barrel.
Russian crude also faces higher transport costs, given the longer sea voyage from Russia's ports in the Baltic to destinations in Asia.
These costs are also likely to increase as more sanctions on Russia's so-called "shadow fleet" of tankers are adopted, with Britain imposing new measures against 30 vessels last week, taking the total to 73.
