Saudi unrefined OSPs are usually launched around the fifth of each month, and set the pattern for Iranian, Kuwaiti and Iraqi costs, affecting more than 12 million barrels per day (bpd) of crude bound for Asia.
State oil giant Saudi Aramco sets its crude prices based on suggestions from clients and after computing the modification in the worth of its oil over the past month, based upon yields and product prices.
Saudi Aramco officials as a matter of policy do not comment on the kingdom’s monthly OSPs.
Below are expected Saudi costs for January (in $/ bbl versus the Oman/Dubai average):.
DEC Change est.JAN OSP.
Arab Bonus Light -0.70 +0.50/ +1.00 -0.20/ +0.30.
Arab Light -0.50 +0.50/ +0.85 +0.00/ +0.35.
Arab Medium -0.20 +0.50/ +0.80 +0.30/ +0.60.
Arab Heavy -0.30 +0.50/ +0.80 +0.20/ +0.50.
Leading oil exporter Saudi Arabia is expected to raise its main asking price (OSPs) for Asian purchasers in January, tracking more powerful standard rates as some refiners increase output to fulfill higher winter need, a Reuters study showed.Six sources at Asian refiners anticipate the January OSP for Saudi flagship crude grade Arab Light to rise by 65 cents a barrel usually, with their projections varying between an increase of 50 cents and 85 cents.Two of the sources forecasted bigger cost boosts for Saudi lighter grades than much heavier ones, as they contain more middle distillates, gasoil and jet fuel, which were more successful for refiners this month.Strong demand for spot crude pushed up November’s average differentials to Dubai swaps for standards cash Dubai and DME Oman by around 80 cents a barrel from last month, information put together by Reuters showed.Refiners such as Indian Oil Corp stepped up unrefined purchases in November as fuel demand recuperated while weather report were indicating a harsher winter.For other oil products, Asia’s cracks for very low sulphur fuel oil margins likewise enhanced in November, while gasoline and naphtha deteriorated due to ample supply.