Saudi Aramco’s Ras Tanura oil refinery and terminal in Ras Tanura, Saudi Arabia, Monday, October 1, 2018, has storage tanks and a petroleum processing facility operating by the Arabian Sea. Dan Pickering, his CIO at Pickering Energy Partners, said:
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Saudi Arabia, the world’s largest oil exporter, has raised the price of its flagship oil for Asian buyers for the third month in a row.
The official selling price for May-loading Asian Arab Light was raised by 30cts/bbl from April, $2.80/bbl above Oman/Dubai quotes.
price increases are Reuters survey Supplies from the Middle East are expected to tighten following cutbacks in sources from Asian refiners and cuts in production by the Organization of the Petroleum Exporting Countries and its ally OPEC+.
The OPEC+ group caught the market off guard on Sunday. 1.16 million barrels per day (bpd) Cut from May through the rest of the year.
Saudi Arabia also raised the OSP for Arab Medium and Arab Heavy, which contain more sulfur than Arab Light, by 30 cents and 50 cents respectively in May.
The size of the Arab Heavy price hike reflects the growing demand for heavier crude in the region as new refineries designed to process heavy oil, such as PetroChina’s Jieyang plant, come online. followed by.
One trader in Singapore said: “Higher OSPs will definitely eat into refiner margins. It’s about giving,” he said.
Market participants expect OPEC+ production cuts to push Asian refiners ask for more supply From Russia, Africa and America.
Elsewhere, the top oil exporter set the Arab Light OSP to Northwest Europe, outperforming by $1 a barrel. ICE Brent May is the same as April.
Meanwhile, the OSP to the US was $6.75 to ASCI in May, up 10 cents from last month.
https://www.cnbc.com/2023/04/06/saudi-arabia-raises-may-arab-light-crude-prices-for-asia-for-3rd-month.html Saudi Arabia raises May Arab Light oil prices for Asia for three months