Latest news with #ArabExtraLight
Gulf Insider
3 days ago
- Business
- Gulf Insider
Refiners Expect Saudi Arabia to Cut Oil Price
Saudi Arabia may cut its official selling price for crude oil by as much as $0.40-$0.50 per barrel for Asian buyers, Reuters has reported, citing sources from the refining industry. The expected price cut concerns the flagship Arab Light grade that Saudi Arabia sells abroad, but other grades are also expected to see cuts, albeit smaller ones, at between $0.30 and $0.45 per barrel, according to the sources. The reason for these expectations is the decision by OPEC+ to keep returning supply to the market. OPEC+ is meeting later today and most observers appear to have assumed it will announce yet another monthly hike of 411,000 barrels daily for July. It is this expected hike that, according to the Reuters refining sources, will drive lower prices for Saudi oil. Indeed, earlier this year, Saudi Aramco cut its official selling price for crude amid OPEC's production ramp-up, with Arab Light seeing a $0.40 price cut per barrel for March. Another grade, Arab Extra Light, saw a price cut of $0.60 per barrel at the time. However, this month, the Saudis actually raised their official selling prices for Asian oil buyers. n a sign that the world's top crude oil exporter expects solid demand in Asia next month, the Saudis lifted the price of the Arab Light crude grade for June by $0.20 per barrel over May prices to a premium of $1.40 a barrel over the Oman/Dubai average, the benchmark off which Middle Eastern producers price their crude loading for Asia. In this context, then, it is difficult to say with any degree of certainty what Saudi Arabia would do with its official selling prices, although a cut would make more sense as it seeks to regain market share lost because of the production curbs that OPEC+ agreed to adopt back in 2022. Also read: Saudi Arabia: Private Sector Workers To Get 4-Day Eid Al Adha Holiday
Arab News
05-05-2025
- Business
- Arab News
Saudi Aramco raises June oil prices for Asian markets
RIYADH: Saudi Aramco has increased its official selling price for crude oil destined for Asia in June, ending a two-month streak of price cuts, the company confirmed in an official statement on Sunday. The state-owned oil giant raised the price of its benchmark Arab Light crude by $0.20, setting it at $1.40 per barrel above the average of Oman and Dubai crude prices. The adjustment comes despite persistent downward pressure on global oil markets due to concerns over rising supply and a fragile demand outlook. The move follows Saturday's announcement from the OPEC+ alliance, which agreed to boost oil production for a second consecutive month. The group, which includes both OPEC members and key allies like Russia, plans to increase output by 411,000 barrels per day in June. Market observers are now closely watching the outcome of the next OPEC+ meeting, scheduled for May 5, which will further clarify the group's production strategy heading into summer. Saudi Aramco prices its crude oil across five density-based grades: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29). The company's monthly pricing decisions impact the cost of around 9 million barrels per day of crude exported to Asia and serve as a pricing benchmark for other major regional producers, including Iran, Kuwait, and Iraq. In the North American market, Aramco set the May OSP for Arab Light at $3.40 per barrel above the Argus Sour Crude Index. Aramco determines its OSPs based on market feedback from refiners and an evaluation of crude oil value changes over the past month, taking into account yields and product prices.
Arab News
06-04-2025
- Business
- Arab News
Saudi Aramco cuts oil prices to Asia to four-month low
SINGAPORE: Saudi Aramco on Sunday lowered its crude oil prices for Asian buyers in May to their lowest in four months. This is the second consecutive month Aramco has lowered its prices. The company also lowered April prices for other grades it sells to Asia by $2.30 per barrel. Aramco cut the May official selling price for flagship Arab Light crude by $2.30 to $1.20 a barrel above the average of Oman and Dubai prices, a pricing document from the producer showed. The company also lowered April prices for other grades it sells to Asia by $2.30 per barrel. Eight OPEC+ countries unexpectedly agreed on Thursday to advance their plan to phase out oil output cuts by increasing output by 411,000 barrels per day in May, a decision that prompted oil prices to extend earlier sharp losses. Prior to the news, Arab Light price for Asia had been expected to fall by $1.80 to $2 in a Reuters survey, tracking the steep declines in benchmark prices in March. Saudi Aramco's crude oil is classified into five grades based on density: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29). These price changes influence the cost of approximately 9 million barrels per day of crude oil shipped to Asia, setting price benchmarks for other major oil producers such as Iran, Kuwait, and Iraq. Spot premium of Dubai averaged at $1.38 per barrel in March, down from $3.33 per barrel, the average in February following more Russian supply returning to Asia since March.
Arab News
09-03-2025
- Business
- Arab News
Saudi Aramco cuts crude oil prices for Asia
RIYADH: Saudi Aramco has lowered its crude oil prices for Asian buyers in April, marking the first reduction in three months. This price cut aligns with market expectations and follows the decision by OPEC+ to gradually increase oil supply starting this month. According to an official statement, the official selling price for the benchmark Arab Light crude has been reduced by 40 cents, now standing at $3.50 per barrel above the average price of Oman and Dubai crude. This change comes after the OSP for Arab Light hit a 12-month high last month, reaching $3.90 above the Oman and Dubai average. Other grades of Saudi crude also experienced price cuts. The OSP for Arab Extra Light has been lowered to $3.30 per barrel, while Arab Super Light is priced at $4.05 per barrel. Additionally, the price for Arab Medium crude has been reduced to $2.95 per barrel, and Arab Heavy crude now stands at $1.80 per barrel. For North American buyers, Saudi Aramco set the OSP for Arab Light crude at $3.80 per barrel above the Argus Sour Crude Index for March. This price adjustment follows OPEC+'s decision to proceed with a planned increase in oil output by 138,000 barrels per day starting in April. It marks the group's first production increase since 2022. Meanwhile, Russian and Iranian oil exports to China are on the rise, as non-sanctioned tankers take advantage of attractive payoffs, helping to ease supply concerns. Saudi Aramco's crude oil is classified into five grades based on density: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29). These price changes influence the cost of approximately 9 million barrels per day of crude oil shipped to Asia, setting price benchmarks for other major oil producers such as Iran, Kuwait, and Iraq. Aramco typically announces its crude OSPs around the 5th of each month, setting the tone for the global oil market.
Reuters
28-02-2025
- Business
- Reuters
Saudi Arabia may lower April oil prices for Asia
SINGAPORE, Feb 28 (Reuters) - Top oil exporter Saudi Arabia may slightly cut its crude prices for Asian buyers in April, tracking the marginal decline in benchmark prices this month, traders said on Friday. The April official selling price (OSP) for flagship Arab Light crude may decline by 20 cents to 65 cents a barrel from March, four Asian refining sources said in a Reuters survey. That suggests the April Arab Light price could come at a premium of about $3.25-3.70 a barrel to the average of the benchmark Oman and Dubai prices, down from the $3.90 for March, the highest in more than a year. The producer hiked prices for February and March as the U.S. sanctions on Russia disrupted supply and prompted Asian buyers to source more oil from the Middle East and other regions. Saudi Arabia also kept to its production quota under a pact by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+. The March OSPs for the country's other grades - Arab Extra Light and Arab Medium - are expected to decrease by at least 65 cents, while those for Arab Heavy may fall by 10-65 cents, the survey showed. These forecasts generally tracked the change in the market structure for the first- and third-month Dubai prices. In February, the Dubai backwardation narrowed by 7 cents a barrel from the previous month, Reuters data showed. Backwardation is the market structure when prompt prices for a commodity are higher than for future months, indicating tight supply or higher demand. Still, Asia's refining margins weakened this week while China's imports of Russian Far East crude and Iranian oil are set to rebound in March which could depress demand, the respondents said. OPEC+ is debating whether to raise oil output in April as planned or freeze it as its members struggle to read the global supply picture because of fresh U.S. sanctions on Venezuela, Iran and Russia, eight OPEC+ sources said. Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia. State oil giant 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. Below are expected Saudi prices for April (in $/bbl against the Oman/Dubai average): Source: Reuters, trade
