Latest news with #ArabLight
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
Yahoo
3 days ago
- Business
- Yahoo
Saudi Arabia set to lower July oil prices for Asia
Saudi Arabia is set to reduce its July crude oil prices for Asia to a six-month low, mirroring declines in benchmark prices due to an uptick in supply from OPEC+. The anticipated drop for Arab Light crude could range from $0.40–0.50, setting the price at $0.90–$1 per barrel (bbl) lower than the previous month, according to a Reuters survey of four Asian refining sources. This potential reduction would mark the lowest price point for Arab Light crude since January, as indicated by Reuters data. Saudi crude official selling prices (OSPs) are typically announced around the fifth of each month and influence pricing for Iranian, Kuwaiti and Iraqi oil, affecting around nine million barrels per day (bpd) destined for Asia. The survey also suggests that July OSPs for other Saudi grades such as Arab Extra Light, Arab Medium and Arab Heavy crude are expected to fall by $0.30-0.45/bbl from June. The decline in oil prices follows OPEC+, which includes the Organisation of the Petroleum Exporting Countries and allies such as Russia, agreeing to boost production by nearly one million barrels per day (1mbbl/d) across April, May and June. In an upcoming meeting, eight OPEC+ countries may consider a further output increase of 411,000bpd for July, as per sources. These supply hikes come amid global economic challenges including a tariff war initiated by the US. Middle Eastern benchmarks have been pressured by the rising supplies, with the average cash Dubai premium to swaps at $1.21/bbl as of 27 May, a $0.45 decrease from April's average. Saudi Aramco, the state oil company, bases its crude prices on customer recommendations and the past month's oil value changes, considering yields and product prices. "Saudi Arabia set to lower July oil prices for Asia" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Recorder
5 days ago
- Business
- Business Recorder
Saudi Arabia may drop July oil prices to Asia to 6-month lows after OPEC+ boosts supply
SINGAPORE: The world's biggest oil exporter Saudi Arabia may cut its crude prices for Asian buyers in July to the lowest in six months, refiners said, tracking losses in benchmark prices driven by rising supply from OPEC+. The July official selling price (OSP) for flagship Arab Light crude may drop by 40 to 50 cents to between 90 cents and $1 a barrel from the previous month, four Asian refining sources said in a Reuters survey. Such a cut would put the Arab Light OSP in July at the lowest since January, Reuters data showed. 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. For other Saudi grades, the July OSPs for Arab Extra Light, Arab Medium and Arab Heavy crude are expected to decrease by 30-45 cents a barrel from June, the survey showed. Oil prices have tumbled since OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed to increase production by nearly 1 million barrels per day (bpd) in April, May and June. Eight OPEC+ countries, set to meet on Saturday, may decide to raise output in July by a further 411,000 bpd, sources have said. The supply hikes have come just as global economic growth faces headwinds from a tariff war launched by the US In a bearish sign, some crude cargoes remained unsold from the previous month, one of the survey respondents said. Saudi Aramco seeks funds through three-part bond sale Rising supplies have weighed down Middle Eastern benchmarks this month, with the average cash Dubai premium to swaps at $1.21 per barrel as of May 27, down 45 cents from April's average. 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.
Shafaq News
19-05-2025
- Business
- Shafaq News
Premium Iraqi oil: OPEC's 3rd most expensive
Shafaq News/ Iraq recorded the third-highest average price for Arab crude oil among OPEC member states in April, according to data released by the Organization of the Petroleum Exporting Countries. Iraqi crude averaged $68.64 per barrel during the month, following Saudi Arabia and Kuwait. Saudi Arabia's Arab Light crude posted the highest average at $70.92 per barrel. Kuwaiti crude followed at $70.28. Algeria's Sahara Blend came in fourth at $67.95, the UAE's Murban crude ranked fifth at $67.73, and Libya's Es Sider placed sixth at $67.00. The data also showed that the average price of Arab crude oils across OPEC dropped to $68.75 per barrel in April, down from $73.65 in March, marking a general decline in prices amid differences in grade and quality.
Argaam
05-05-2025
- Business
- Argaam
Saudi Aramco sets Arab Crude OSP for June
Saudi Aramco set the official selling price (OSP) for its Arab Light crude for June delivery to North America at $3.4 per barrel above the Argus Sour Crude Index (ASCI). For Western Europe, the Arab Light price was set at $1.45 per barrel above ICE Brent, according to a statement to Argaam. The Arab Light crude grade was priced $1.25 above the ICE Brent for Europe and the Mediterranean. In addition, the price for East Asia was set at $1.40 more than the average of the Oman and Dubai benchmarks, as shown below: Aramco produces five density-based grades of crude oil: Super Light (greater than 40 degrees), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29), according to Argaam 's data.
