February 11, 2025 [Oil Price]- Refiners in Asia expect Saudi Arabia to hike its official selling prices (OSPs) to Asia for March to the highest against benchmarks since January 2024, a Reuters survey found on Monday, as Middle East’s key benchmarks are rallying on tightened Russian supply to China and India after the latest U.S. sanctions.
Saudi Aramco, the world’s top crude oil exporter, is expected to raise the price of its flagship Arab Light grade to Asia loading in March by up to $2.50 per barrel over the Oman and Dubai benchmarks, three refiners in the Reuters poll said. Another refinery source expects Aramco to hike its OSPs for all grades by $3 per barrel.
If Saudi Arabia does next week as expected, the price of Arab Light could jump to a premium of at least $3.50 per barrel over the Oman/Dubai average, which is used by Middle Eastern exporters to price their crude going to Asia.
Earlier this month, Saudi Arabia raised the price of its crude loading for Asia in February by more than expected as supply in the world’s largest-importing region was tightening with the continued OPEC+ cuts and reduced volumes from Iran and Russia.
Arab Light loading in February to Asia is priced at a premium of $1.50 over the Oman/Dubai average.
The hike for March loadings which Asian refiners now expect could raise the premium of Arab Light to at least $3.50 per barrel over Oman/Dubai and would be the highest such premium since January 2024, according to data compiled by Reuters.
The Oman and Dubai benchmarks have rallied in the past month amid lower supply from Russia and Iran and have surged since the U.S. slapped on January 10 the most aggressive sanctions on Russian oil trade yet.
Saudi Arabia typically announces around the fifth of each month its crude pricing for the following month and doesn’t comment on price changes. It also sets the tone for the pricing to Asia of the other major oil producers in the Middle East.
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