Saudi Aramco Hikes Crude Prices To Asia
04.10.2023 By TankTerminals.com - NEWS

April 10, 2023 [OilPrice.com] – Just days after the unexpected OPEC+ oil production cut, Saudi Aramco, the Saudi state-owned oil company, has raised prices of crude to Asia by 30 cents per barrel.

The price hike in Aramco\’92s flagship Arab Light crude to Asia for May delivery represents the monthly increase in a row, Bloomberg reports.

The move to increase the May OSP was not unexpected, though prior to the surprise OPEC+ announcement traders surveyed by Bloomberg had expected Arab Light prices to fall by 43 cents per barrel.

Earlier this week, analysts speculated that Aramco could potentially hike May crude prices to Asia by 20 cents per barrel, to $2.7 per barrel, based on a Reuters survey of Asian refiners.

Already tight supply will now be further squeezed with the additional 1.6 million bpd cut. This, in turn, will increase the upward momentum for Middle East medium and sour grades, which are closing that gap with light grades, Reuters reports.

The benchmarks major GCC producers use to price their crude bound for Asia have soared, narrowing the gap with the price of Brent Crude in the past couple of days. Analysts are not discounting the possibility for Dubai crude to entertain a premium to Brent in the coming months, with China’92s economic recovery.

PetroChina is forecasting a 3% rise in refined fuel demand this year, from 2019, while other state-sponsored Chinese analysts are eyeing a 7.8% increase in oil refinery throughput, Reuters reports.

While Wednesday’92s OSP increase was anticipated in light of the OPEC+ output cuts, the first in the three consecutive hikes that came in February took the market by surprise. The February hike for March OSP of 20 cents per barrel (to a premium of $2 a barrel over the Dubai/Oman average) was the first increase in six months and was primarily based on Chinese demand expectations.

The May OSP price increase further solidifies analysis that the Saudis view coming Chinese demand as particularly robust.

Saudi Aramco sells some 60% of its oil to Asia.

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data\

ConocoPhillips Working to Resume APLNG Terminal Ops
12.05.2023 - NEWS
December 5, 2023 [LNG Prime]- A unit of ConocoPhillips is working to resume production at the Aus... Read More
Peru LNG Terminal Sent Four Cargoes in November
12.05.2023 - NEWS
December 5, 2023 [LNG Prime]- Peru LNG’s liquefaction plant at Pampa Melchorita has shipped fou... Read More
India’s Top Clean Energy Firm to Invest $22 Billion to Boost Capacity Fivefold
12.05.2023 - NEWS
December 5, 2023 [Oil Price]- Adani Green Energy, the biggest renewable power producer in India, ... Read More
Oil Prices Little Changed Amid OPEC+ Cut Doubts, Mid-East Tension
12.05.2023 - NEWS
December 5, 2023 [Reuters]- Oil prices were little changed on Tuesday amid uncertainty over volun... Read More