Saudi Aramco Raises Official Selling Price for Arab Light Crude in June
In a recent official statement, Saudi Aramco announced an increase in June’s official selling price for the flagship Arab light crude it sells to Asia.
Price Increase for Arab Light Grade
The differentials for the Arab Light grade were priced at Platts Dubai/DME Oman +$2.90 per barrel, up from +$2 a barrel in April. This marks the highest OSP in five months and aligns with market expectations.
The price hike comes as a result of a firmer market structure and higher spot premiums last month for tradable Middle East grades like Oman, Al Shaheen, and Upper Zakum.
Factors Driving OSP Increase
The higher OSPs also reflect the impact of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) maintaining voluntary cuts into the second quarter. Additionally, a global crunch on supplies of sour crude has supported Middle East grades.
Changes in Prices for Arab Medium and Arab Heavy
Arab Medium saw an increase of $1 per barrel to +$2.35 per barrel, while Arab Heavy was hiked by $1.10 per barrel to +$1.60 per barrel.
Adjustments for Northwest Europe Market
In Northwest Europe, the Arab Light OSP was set at +$2.10 per barrel over ICE Brent futures, up from +$0.30/b. Medium grade prices were also adjusted from minus $0.40/b to +$1.10/b to reflect the relative weakness in Brent compared to sour barrels.
Stability in US Gulf Prices
For the US Gulf, the Arab Light OSP remained unchanged at +$4.75 per barrel over ASCI. Medium and Heavy grades were slightly lower on the month, with prices at +$5.45/b and +$5.10/b, respectively.