Middle East Crude-Benchmarks rise after Saudi OSP hike

Middle East crude benchmarks Oman, Dubai and Murban rose on Monday after Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean.

SAUDI OSP

The world's top exporter hiked its flagship Arab Light crude oil price to Asia to $2.90 a barrel above the Oman/Dubai average in June, the highest since January.

It also raised the June Arab light crude prices to northwest Europe and the Mediterranean to $2.10 and $2 a barrel above ICE Brent, respectively, while keeping the price in the United States unchanged at $4.75 a barrel above ASCI.

The price hikes for most Saudi crude grades in Asia were at the higher end of traders' expectations in a Reuters survey.

Saudi crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia.

Some traders questioned the ability of Asian refiners to absorb higher Saudi crude costs as refining margins in Asia dropped nearly $2 a barrel in April from March. (DUB-SIN-REF)

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps rose 5 cents to $1.81 a barrel.

PRICES ($/BBL)

NEWS

Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, a statement from Aramco showed on Sunday, signaling expectations of strong demand this summer.

As Big Oil returns this week to the industry's annual showcase for offshore energy projects and equipment in Houston, deepwater discoveries off Guyana, Namibia and the U.S. Gulf Coast will take the spotlight.

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