Saudi Arabia, the world's top oil exporter, raised crude prices for all regions, with those to Asia hitting all-time highs as disruption in Russian supplies support prices, according to a pricing document seen by Reuters on April 4.
State oil producer Saudi Aramco raised its May official selling price (OSP) to Asia for its flagship Arab Light crude to $9.35 a barrel above Oman/Dubai crude, the grade's highest premium ever.
Asia saw the biggest price increases across all crude grades, followed by Northwest Europe, the Mediterranean and the United States.
The record Saudi crude prices for Asia come as oil exports from Russia are hit by buyer aversion and western sanctions on the world's top exporter of crude and oil products combined following the Ukraine conflict. Oil markets could lose 3 million barrels per day (bpd) of Russian crude and refined products from April, the International Energy Agency (IEA) said in March.
Nevertheless, the $4.40 a barrel increase for May Arab Light crude price was slightly below the $5 hike expected in a Reuters survey. Saudi Aramco might have tempered the price hike after it raised prices more than expected in April, traders said.
Separately, the company set the Arab Light OSP to Northwestern Europe at plus $4.60 per barrel versus ICE Brent and to the United States at plus $5.65 per barrel over ASCI (Argus Sour Crude Index).
Recommended Reading
What's Affecting Oil Prices This Week? (Feb. 5, 2024)
2024-02-05 - Stratas Advisors says the U.S.’ response (so far) to the recent attack on U.S. troops has been measured without direct confrontation of Iran, which reduces the possibility of oil flows being disrupted.
Veriten’s Arjun Murti: Oil, Gas Prospectors Need to Step Up—Again
2024-02-08 - Arjun Murti, a partner in investment and advisory firm Veriten, says U.S. shale provided 90% of global supply growth—but the industry needs to reinvent itself, again.
Paisie: Economics Edge Out Geopolitics
2024-02-01 - Weakening economic outlooks overpower geopolitical risks in oil pricing.
Commentary: Are Renewable Incentives Degrading Powergen Reliability?
2024-02-01 - A Vistra Corp. chief, ERCOT’s vice chairman and a private investor talk about what’s really happening on the U.S. grid, and it’s not just a Texas thing.
Exxon’s Payara Hits 220,000 bbl/d Ceiling in Just Three Months
2024-02-05 - ExxonMobil Corp.’s third development offshore Guyana in the Stabroek Block — the Payara project— reached its nameplate production capacity of 220,000 bbl/d in January 2024, less than three months after commencing production and ahead of schedule.