Saudi Arabia raised official sales prices for its crude oil for Asia, northwest Europe and the Mediterranean in June, according to an Aramco statement released on Sunday, in a sign of expectations for strong demand this summer.
The world’s top exporter raised its flagship price of Arab Light crude to Asia to $2.90 a barrel above the Oman/Dubai average in June, the highest since January.
It also increased June prices to northwest Europe and the Mediterranean, to $2.10 and $2 above ICE Brent, respectively, while keeping the US price unchanged at $4.75 above ASCI.
Price rises for most grades of Saudi crude in Asia were at the upper end of traders’ expectations, according to a Reuters poll.
Some traders questioned the ability of Asian refiners to absorb the higher costs of Saudi crude, as refining margins in Asia fell almost $2 a barrel in April from March.
The state oil giant Saudi Aramco sets its prices based on customer recommendations and after calculating the change in the value of its oil in the last month, based on product yields and prices.
The official sales prices of Saudi crude oil set the trend of the Iranian, Kuwaiti and Iraqi ones, affecting about 9 million barrels per day of crude oil destined for Asia.
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– 2024-05-11 02:00:05
