Saudi Aramco has announced an increase in the official selling price (OSP) for its premier Arab Light crude to Asian markets, reflecting shifts in the market landscape. The adjustment for June sees the OSP at +$2.90 per barrel over benchmarks Platts Dubai/DME Oman, rising from the previous +$2 per barrel in April.
Reaching a five-month peak, this adjustment aligns with market analysts’ forecasts, which anticipated the increase based on a stronger market structure and elevated spot premiums for Middle East oil grades like Oman, Al Shaheen, and Upper Zakum in recent trades.
Supporting the price uptick, OPEC+ has extended its voluntary production cuts from the first to the second quarter. Additionally, a global shortage in sour crude supplies further bolstered the value of Middle East oil varieties.
The OSP for Arab Medium crude also saw an increase by $1 to +$2.35 per barrel, and Arab Heavy experienced a $1.10 rise to +$1.60 per barrel.
In Northwest Europe, the OSPs adjusted to reflect the sour crude market’s strength relative to Brent crude benchmarks. Arab Light’s OSP rose to +$2.10 per barrel over ICE Brent futures from +$0.30, while Arab Medium ascended from -$0.40 to +$1.10 per barrel.
Contrastingly, the pricing for Arab Light destined for the US Gulf Coast remained static at +$4.75 per barrel over ASCI. Arab Medium and Heavy grades posted minor decreases to +$5.45/b and +$5.10/b, respectively.