04 Apr 2022 | 17:04 UTC

Saudi Aramco raises May crude OSPs to highest-ever level

Highlights

Asia-bound Light, Medium, and Heavy all rise by $4.40/b

Europe-bound heavy crude sees the smallest rise: 30-60 cents/b

US-bound cargoes all surge by $2.20/b

Saudi Aramco raised official selling prices across the board for May-loading cargoes, with Asia-bound barrels seeing the largest increases, between $2.70/b and $4.40/b, according to a pricing document Aramco released April 4.

For Asia-bound crude, Aramco increased Arab Light, Medium, and Heavy by $4.40/b to premiums over the Oman/Dubai average of $9.35/b, $9.30/b, and $7.95/b, respectively. Super Light into Asia was raised by $2.70 to a $10.85/b premium, while Extra Light was increased by $3.70 to a $9.60/b premium. Those were the highest ever differentials Aramco set, according to S&P Global Commodity Insights data dating back to 1970.

Aramco had been expected to raise official selling prices for May-loading crude by a record of about $4/b-$5/b on the back of volatility the Russia-Ukraine war spurred, sources told S&P Global ahead of the announcement.

The Dubai cash/futures spread—understood to be a key element in OSP calculations—averaged $9.25/b in March, up from an average of $3.87/b in February, S&P Global data showed.

For Northwest Europe-bound crude, Aramco lifted its Extra Light grade the most, by $3.80, to an $8.10/b premium to ICE Brent, and its Light grade was up $3.00 to plus $4.60/b. Arab Medium increased by $1.40 to a $1.90/b premium, while Arab Heavy rose 30 cents to a $1.10/b discount to ICE Brent.

Mediterranean-bound crudes also saw increases. Arab Light gained $3.00 to a $4.90/b premium to ICE Brent. Arab Medium also was up $1.40/b on the month to reach a $2.20/b premium to the benchmark. The May OSP for Extra Light was increased by $1.60 to a $5.60/b premium and Arab Heavy gained 60 cents/b, set at flat to ICE Brent.

For US-bound crudes, Aramco increased all grades by $2.20 from April. The April Extra Light OSP was set at a $7.00/b premium over ASCI. Arab Light, Medium, and Heavy grades were up as well at premiums of $5.65/b, $4.95/b, and $4.50/b, respectively.

Saudi Aramco Official Selling Prices ($/b)
Grade
March
April
May
Change
To Asia (Oman/Dubai basis)
Super Light
5.45
8.15
10.85
+2.70
Extra Light
3.60
5.90
9.60
+3.70
Arab Light
2.80
4.95
9.35
+4.40
Arab Medium
2.75
4.90
9.30
+4.40
Arab Heavy
1.40
3.55
7.95
+4.40
To Northwest Europe (ICE Brent basis)
Extra Light
2.20
4.30
8.10
+3.80
Arab Light
-0.10
1.60
4.60
+3.00
Arab Medium
-0.90
0.50
1.90
+1.40
Arab Heavy
-2.60
-1.40
-1.10
+0.30
To Mediterranean (ICE Brent basis)
Extra Light
2.30
4.00
5.60
+1.60
Arab Light
0.00
1.90
4.90
+3.00
Arab Medium
-1.10
0.80
2.20
+1.40
Arab Heavy
-2.60
-0.60
0.00
+0.60
To US (ASCI basis)
Extra Light
3.80
4.80
7.00
+2.20
Arab Light
2.45
3.45
5.65
+2.20
Arab Medium
1.75
2.75
4.95
+2.20
Arab Heavy
1.30
2.30
4.50
+2.20

Source: Saudi Aramco

Editor:

Valarie Jackson