Saudi Aramco raises June’s Arab light crude price to Asia

Saudi Aramco raised June’s official selling price for the flagship Arab light crude it sells to Asia, according to an official statement.

Differentials for the flagship Arab Light grade were priced at Platts Dubai/DME Oman +$2.90 per barrel, up from +$2 a barrel in April.

This was the highest OSP in five months and largely in line with expectations, based on a firmer market structure and higher spot premiums last month for tradable Middle East grades such as Oman, Al Shaheen and Upper Zakum.

The higher OSPs also came after the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, maintained the first quarter round of voluntary cuts into the second quarter, while the global crunch on supplies of sour crude also underpinned Middle East grades.

Arab Medium was increased by $1 per barrel to +$2.35 per barrel, while Arab Heavy was hiked $1.10 a barrel to +$1.60 per barrel.

For Northwest Europe, the Arab Light OSP was set +$2.10 per barrel over ICE Brent futures, up from +$0.30/b while Medium was hiked from minus $0.40/b to +$1.10/b. Both grades were hiked to reflect the relative weakness in Brent compared to sour barrels.

Arab Light for April to the US Gulf was kept unchanged at +$4.75 per barrel over ASCI, while Medium was at +$5.45/b and Heavy at +$5.10/b, respectively, both slightly lower on the month.