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Saudi Arabia may raise Nov official crude prices for Asia

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Top oil exporter Saudi Arabia may raise prices for most crude grades it sells to Asia in November on expectations for demand recovery and Chinese refineries to increase output following the issuance of new product export quotas.

The November official selling prices (OSP) for flagship Arab Light crude may rise by 25 cents a barrel, according to the median of the responses of five refining sources surveyed by Reuters on Sept. 29-30.

“Oil demand is expected to improve, which we can see from current market structure,” said one respondent.

The backwardation in the Dubai market structure widened during trading last month, implying that demand for crude in the near-term is rising. The premium for front-month Dubai over the price for the third-month averaged $5.36 a barrel in September, up from $5.07 in August.

The market also expects China, the world’s biggest crude importer, to increase purchases as Beijing has issued a fresh round of refined product export quotas, totalling 15 million tonnes. That could encourage Chinese refineries to lift their crude buying to ramp up fuel output.

Refining margins for gasoline and diesel plunged on China’s new export quotas as a flood of refined products would knock down the prices of the products.

“That’s a reason why we forecast the official prices for lighter crude grades to only see a small hike,” said another respondent.

The respondents polled by Reuters assess the price increase for Arab Medium and Arab Heavy to be larger than Arab Light, as the refining margins, also known as cracks, for fuel oil are performing better than the light- and middle-distillate products , .

China issued 1.75 million tonnes of export quotas for low-sulphur fuel oil, compared to 13.25 million tonnes for other products in the recent round.

OPEC+ will consider an oil output cut of more than a million barrels per day (bpd) during their monthly meeting this week, in what would be the biggest move yet since the COVID-19 pandemic to address oil market weakness.

Benchmark oil prices have fallen by more than 30% since March.

Saudi crude OSPs are around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 9 million barrels per day (bpd) of crude bound for Asia.

Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials as a matter of policy do not comment on the kingdom’s monthly OSPs.

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Pakistan appoints 26 new jirga members for border crisis talks in Afghanistan 

Customs sources have said trade suspension is causing an estimated daily loss of $3 million in bilateral trade

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The Pakistani authorities have appointed a new 26-member jirga to hold further talks in Afghanistan over reopening Torkham border after the first round of talks hit a stalemate last week. 

Torkham crossing was closed almost a month ago when Pakistan border officials opposed the reconstruction and renovation of a security check post on the Afghan side. 

Sources told Pakistan’s Dawn news outlet that the new jirga would consist of 26 members, including experienced and influential tribal elders and local traders who are mostly members of Khyber Chamber of Commerce and Industry.

The source told Dawn talks could resume today, Monday March 17.

Torkham, a key border crossing between Pakistan and Afghanistan in the Khyber District of Khyber Pakhtunkhwa, remained closed for the 24th day on Monday amid rising concerns among traders of both countries who have suffered enormous losses due to the closure. 

The crossing was closed on February 21 after escalation of tensions between the border forces on both sides. During subsequent exchanges of fire, three Afghan soldiers died while eight Pakistani paramilitary troops also sustained injuries.

Customs sources have said trade suspension is causing an estimated daily loss of $3 million in bilateral trade adding that over the first 20 days, approximately $60 million in trade was lost.

Torkham Border Crossing facilitates the daily movement of around 10,000 people to Afghanistan and is a key trade route between the two countries. Over 5,000 trucks, including those carrying perishable goods, are currently stranded, causing heavy financial losses.

 

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Uzbekistan investors show keen interest in mining and construction sectors

The Uzbek Ministry of Investment, Industry and Trade said last month that Uzbekistan and Afghanistan plan to increase the trade turnover to $3 billion.

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Uzbek investors met last week with Afghanistan’s Deputy Minister of Commerce and Industry, Ahmadullah Zahid, and showed an interest in the construction and mining sectors in Afghanistan. The Ministry of Commerce and Industry (MoCI) said in a statement after the meeting that the Uzbek delegation had been assured that Afghanistan was secure and that there are vast investment opportunities in the construction and mining sectors.

Zahid reaffirmed the government’s commitment to supporting both domestic and foreign investors, ensuring a favorable business environment. He also said he hoped the investments would help boost Afghanistan’s economy and further strengthen economic relations between the two neighbouring nations. This comes after Uzbekistan opened a trade center in the northern city of Mazar-e-Sharif early this month.

The trade center provides Uzbek entrepreneurs with a platform to market their goods in Afghanistan.

Trade turnover between Uzbekistan and Afghanistan totalled $153.7 million in January 2025. This is 231 percent more against the same period last year ($46.3 million in January 2024).

The Uzbek Ministry of Investment, Industry and Trade said last month that Uzbekistan and Afghanistan plan to increase the trade turnover to $3 billion.

The latest development comes amid concerted efforts by both countries to boost their cross-border trade relations.

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Afghanistan records trade volume of $292 million via air corridors in 1403 solar year

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Afghanistan’s Ministry of Industry and Commerce says that in the solar year 1403 (April 2024 to March 2025), goods worth $292 million were transported through air corridors.

Abdulsalam Jawad Akhundzada, the ministry’s spokesman, said that the value of exports through air corridors this year totalled $125 million and imports $167 million.

He added that the main export items were dried fruits, saffron, dried and fresh figs, jujubes, pine nuts and handicrafts, and the main import items were medicines and electronic devices.

Akhundzada said that exports happened through Kabul, Kandahar and Mazar-i-Sharif airports to the United States, Germany, China, India, Britain, South Africa, Austria, United Arab Emirates and some other countries.

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