• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days Does Toyota Know Something That We Don’t?
  • 20 hours America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 10 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 10 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 11 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 11 days United States LNG Exports Reach Third Place
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Asian Buyers Expected To Pay More For Saudi Crude This Summer

Asian crude buyers expect Saudi Arabia to raise its August official selling price (OSP) for the Arab Heavy crude that it sells to Asia to the highest in more than 3 years.

A tighter market for heavy crude grades in Asia amid the OPEC production cut has led to record refining profits on making fuel oil in Asia, Reuters reported on Monday, citing trade sources—a perfect opportunity for lifting prices.

According to four Asian buyers, Saudi Arabia’s oil giant Saudi Aramco is seen raising the OSP for Arab Heavy for Asia by US$0.20 per barrel, to US$1.65 below the average Oman/Dubai benchmarks for August, which would be the slimmest discount since December 2013.

“Maybe they [Saudi Aramco] will cut Arab Heavy supplies for August because of the OPEC cut and summer demand for power generation,” a trader with a refiner in North Asia told Reuters.

A fifth source briefed by Reuters said that it expected the Arab heavy price to Asia to remain unchanged from July prices.

If Saudi Aramco does raise its heavy crude prices to Asia, demand for heavy varieties from other Middle Eastern producers such as Russia, Angola—as well as America—could rise as well.

Last month, Saudi Arabia raised its OSPs for all of its crude grades sold to Asia in July, in line with market expectations. Related: What Oil Needs To Rally Higher

The price of the Arab Heavy for Asia was raised by US$0.95 per barrel for July, to a US$1.85 discount to the Oman/Dubai average. The price of the flagship Arab Light for Asian customers was raised by US$0.60 a barrel compared to June, to a discount of US$0.25 a barrel to the Oman/Dubai average.

According to the Asian sources surveyed by Reuters, for August, Saudi Arabia is expected to reduce the Arab Light price by US$0.20 a barrel, to the lowest in two months, after a weakening Dubai market in June.

Saudi Arabia’s exports to Asia, as well as to the U.S., have been dropping lately, according to ClipperData.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News