SPECULATION MOUNTS ON REPORTED SAUDI NETBACK SALES TO ARAMCO MAJORS

A deadpan refusal either to confirm or deny has so far constituted the official reaction of both the Saudi authorities and the Aramco oil companies to widespread media reports to the effect that the parties concerned may have concluded or be in the process of concluding crude oil supply deals based on a netback pricing formula rather than on official prices.

Given Saudi Arabia's traditional strict adherence to the OPEC...