LONDON: Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, a statement from Aramco showed on Sunday, signaling expectations of strong demand this summer.
The world's top exporter hiked its flagship Arab Light crude oil price to Asia to US$2.90 a barrel above the Oman/Dubai average in June, the highest since January.
It also raised the June Arab light crude prices to northwest Europe and the Mediterranean to US$2.10 and US$2 a barrel above ICE Brent, respectively, while keeping the price in the United States unchanged at US$4.75 a barrel above ASCI.
The price hikes for most Saudi crude grades in Asia were at the higher end of traders' expectations in a Reuters survey. Some traders questioned the ability of Asian refiners to absorb higher Saudi crude costs as refining margins in Asia dropped nearly US$2 a barrel in April from March.
Saudi crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia. Saudi term crude supplies to Asia are priced as a differential to the Oman/Dubai average. - Reuters