RIYADH: Saudi Aramco raised the April’s official selling price for the flagship Arab light crude it sells to Asia, while differentials for Europe were trimmed, according to an official statment.
Differentials for Arab light grade were priced at Platts Dubai/DME Oman +$1.70 per barrel, having been set at +$1.5/b in both February and March, which was the lowest OSP since November 2021.
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 a slowdown in Urals flows from Europe is expected due to longer shipping times as a result of attacks against tankers in the Red Sea.
Arab Medium was increased by $0.30/b to +$0.85/b, while Arab heavy was also up by the same margin at parity. Arab extra light was up $0.20/b to +$1.70/b.
The official selling price for April to Northwest Europe fell by 60 to 70 cents a barrel. The official selling price of US-bound crude was little changed.
Differentials for spot Middle East medium sour barrels such as Oman and Upper Zakum improved slightly during February, with selling indications comfortably above +$1/b to underlying Dubai swaps, while premiums have strengthened to around +$1.50/b in early March for spot cargoes loading in May.
Oil prices rebounded slightly on Wednesday after four days of declines as signs of supply tightness amid output cuts by major producers overrode demand concerns in China and the US, the world’s two biggest crude consumers.
Brent crude futures were up 53 cents, or 0.65 percent, to $82.57 a barrel at 0922 GMT, while US West Texas Intermediate crude futures rose 64 cents, or 0.82 percent, to $78.79 a barrel, after declining the past two days.
Source: Arab News
