Saudi Arabia’s latest oil pricing for Asian customers is pointing to an uneven recovery, with higher-density crudes outperforming lighter grades.
State-owned Aramco raised its official prices for Arab Medium and Arab Heavy grades to Asian customers for September sales by 60 cents to 70 cents a barrel, about double the 30 cent increase for flagship Arab Light crude. The move partly reflects lower global supplies of heavier grades following voluntary Saudi cuts and reduced Russian exports, traders said.
Heavier oil blends have also benefited from better refining margins, making them more attractive for sophisticated processors, many of which are in Asia. Profits from making diesel and fuel oil have surged in recent weeks, while margins for gasoline and petrochemicals have weakened.
The September OSP for Arab Light crude came in slightly lower than a median estimate based on a Bloomberg poll. The official price for Arab Super Light crude, a small export stream, was increased.
Arab Extra Light crude, meanwhile, was kept unchanged in a move that traders said could be due to high Asia-bound arbitrage flows from the US. That made it the cheapest relative to Arab Medium since June 2020, according to data compiled by Bloomberg. Globally, lighter crudes are the most well-supplied, according to traders, particularly in the Atlantic Basin.
--With assistance from Yongchang Chin and Sharon Cho.
