04 Mar 2022 | 20:10 UTC

Saudi Aramco raises April crude OSPs to Asia, Europe, US

Highlights

Asia-bound Super Light, Extra Light up $2.70/b, $2.30/b

Saudi Aramco raises NWE-bound Extra Light by $2.10/b

US-bound cargoes all up $1/b

OSPs follow OPEC + decision to raise output in line with plan

Saudi Aramco raised official selling prices across the board for April-loading cargoes, with Asia-bound barrels seeing the largest increases between $2.15/b and $2.70/b, according to a pricing document released by Saudi Aramco on March 4.

The stronger OSPs follow the recent rally in crude futures prices, including the Dubai sour complex, which have jumped following Russia's invasion of Ukraine and worries of supply constraints.

The April OSP announcement follows the the March 2 meeting of OPEC and its allies when the group agreed to increase crude production as planned by 400,000 b/d in April, despite the dramatic spike in oil prices well over $100/b.

The biggest price increase for April was for Super Light, Extra Light, Light, Medium and Heavy grades to Asia, as healthy refining margins have increased demand for crudes, and tighter supply and rising freight economics of arbitrage cargoes from the West has some buyers looking to Middle East oil.

For Asia-bound crude, Aramco increased Arab Medium by $2.15/b to a $4.90/b premium over the Oman/Dubai average and Arab Heavy rose $2.15/b to plus $3.55/b. Super Light into Asia was raised by $2.70/b to a $8.15/b premium, while Extra Light was increased by $2.30/b to a $5.90/b premium. Light was raised $2.15/b to a $4.95/b premium.

For Northwest Europe-bound crude, Aramco lifted its Extra Light grade the most by $2.10/b to a $4.30/b premium to ICE Brent and its Light grade was up $1.70/b to plus $1.60/b. Arab Medium was increased by $1.40/b to a 50 cents/b premium, while Arab Heavy rose $1.20/b to a $1.40/b discount to ICE Brent.

Mediterranean bound crudes also saw increases. Arab Light gained $1.90/b to a $1.90 premium to ICE Brent. Arab Medium also was up $1.90 on the month to reach an 80 cents/b premium to the benchmark. The April OSPs for Extra Light increased by $1.70/b to a $4/b premium and Arab Heavy gained $2/b to a 60 cents/b discount to ICE Brent.

For US-bound crudes, Aramco increased all grades by $1/b from March. The April Extra Light OSP was set at a $4.80/b premium over ASCI. Arab Light, Medium and Heavy grades were up as well at premiums of $3.45/b, $2.75/b and $2.30/b, respectively.

Saudi Aramco Official Selling Prices ($/b)
Grade
March
April
Change
To Asia (Oman/Dubai basis)
Super Light
5.45
8.15
2.70
Extra Light
3.60
5.90
2.30
Arab Light
2.80
4.95
2.15
Arab Medium
2.75
4.90
2.15
Arab Heavy
1.40
3.55
2.15
To Northwest Europe (ICE Brent basis)
Extra Light
2.20
4.30
2.10
Arab Light
-0.10
1.60
1.70
Arab Medium
-0.90
0.50
1.40
Arab Heavy
-2.60
-1.40
1.20
To Mediterranean (ICE Brent basis)
Extra Light
2.30
4.00
1.70
Arab Light
0.00
1.90
1.90
Arab Medium
-1.10
0.80
1.90
Arab Heavy
-2.60
-0.60
2.00
To US (ASCI basis)
Extra Light
3.80
4.80
1.00
Arab Light
2.45
3.45
1.00
Arab Medium
1.75
2.75
1.00
Arab Heavy
1.30
2.30
1.00

Source: Saudi Aramco

Editor:

James Bambino