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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.
Argaam
07-03-2025
- Business
- Argaam
Saudi Aramco sets Arab Crude OSP for April
Saudi Aramco set April official selling price (OSP) for its Arab Light crude to North America at $3.8 per barrel above the Argus Sour Crude Index (ASCI). The Arab Light price for buyers in West Europe has been set at $3.05 above the ICE Brent, according to a statement to Argaam. The Arab Light crude grade was priced $2.85 above the ICE Brent for Europe and the Mediterranean, while the price for East Asia was set at $3.50 above the average of the Oman and Dubai benchmarks, as shown below: Aramco produces five grades of crude: Super Light, Arab Light, Arab Extra Light, Arab Medium, and Arab Heavy, according to Argaam data. The Arab Super light crude is characterized by a density of more than 40, while the Arab Extra light is characterized by a density ranging between 36 and 40. The Arab Light has a density between 32 and 36, the Arab Medium crude has a density between 29 and 32 degrees, and the Arab Heavy has a density of less than 29 degrees.
Arab News
06-02-2025
- Business
- Arab News
Saudi Aramco raises March oil prices for Asia
RIYADH: Saudi Aramco has significantly raised its crude oil prices for Asian customers in March, reaching their highest levels in over a year. This price hike comes as a result of rising benchmark prices, driven by increased demand from China and India, as well as supply disruptions due to US sanctions on Russian oil. According to an official statement, the official selling price for the benchmark Arab Light crude has been increased by $2.40 per barrel. For March, the price for Asian buyers has been set at $3.90 per barrel above the regional benchmark. Other grades also saw price hikes, with the OSP for Arab Extra Light and Super Light increasing by $2.40 and $2.10 per barrel, respectively. The OSP for Arab Medium crude was raised by $2.50 per barrel, while the price for Arab Heavy crude went up by $2.60 per barrel. For North America, Aramco has set the March OSP for Arab Light crude at $3.80 per barrel above the Argus Sour Crude Index. Earlier this week, OPEC+ members reaffirmed their commitment to maintaining stability in the global oil market through production cuts. The 58th Joint Ministerial Monitoring Committee session, conducted via videoconference, reviewed crude oil production data for November and December 2024 and highlighted strong compliance by both OPEC and non-OPEC countries involved in the Declaration of Cooperation. The committee reiterated its commitment to the DoC, which is set to extend through the end of 2026. It also commended Kazakhstan and Iraq for their improved compliance, including voluntary production adjustments. OPEC also welcomed renewed pledges from overproducing countries to fully comply with production targets. Saudi Aramco produces five grades of crude oil: Super Light, Arab Light, Arab Extra Light, Arab Medium, and Arab Heavy. These grades are differentiated by their density. Super Light has a density greater than 40, Arab Extra Light ranges from 36 to 40, Arab Light falls between 32 and 36, Arab Medium is between 29 and 32, and Arab Heavy has a density of less than 29. Saudi Aramco typically releases its crude OSPs around the 5th of each month, setting the price trend for other major producers, including Iran, Kuwait, and Iraq. These price benchmarks affect approximately 9 million barrels per day of crude oil shipments to Asia.
