| 29 May 2024, Wednesday |

Saudi Arabia raises January Arab Lt crude price to Asia to near 2-year high

Aramco Saudi Arabia’s national oil producer, hiked official selling prices (OSPs) for all crude grades exported to important market Asia for the second month in a row in January, mirroring substantial advances in the Middle East spot market the previous month.

The price increases were revealed by the firm on Sunday, despite a deal last week by the Organization of the Petroleum Exporting Countries and their allies, including Russia, known as OPEC+, to increase supply by 400,000 barrels per day in January.

On Monday, global crude futures jumped by more than $1 a barrel after Saudi Arabia boosted prices.

The business increased its January OSP to Asia for its flagship Arab Light crude to $3.30 per barrel vs Oman/Dubai crude, up $0.60 from December. According to Reuters statistics, the January disparity is the largest in nearly two years.

Traders said the price increases were mainly in line with market expectations, while one claimed Arab Heavy crude had gotten more costly despite lower fuel oil margins.

Separately, the business fixed the Arab Light OSP to Northwestern Europe at minus $1.30 per barrel over ICE Brent, and the Arab Light OSP to the US at plus $2.15 per barrel above ASCI (Argus Sour Crude Index).

  • Reuters