SINGAPORE: Saudi Aramco has raised the July price for its Arab Light grade for Asian customers by 60 cents a barrel versus June to a premium of $2.25 a barrel to the Oman/Dubai average, broadly in line with market expectations.
Prices for Arab Medium were raised by 90 cents a barrel to 35 cents above the average, while those for Arab Heavy were increased $1.10 a barrel to a discount of $2.45 to the average, the state oil company said.
The top oil exporter was expected to raise the official selling prices (OSPs) for all its crude grades going to Asia because of a stronger Dubai market.
Another factor that supported higher prices was the widening of the Dubai cash spread between the first and third months. The intermonth spread widened by 50-60 cents a barrel in backwardation at the end of May compared with the start of the month, signalling stronger prompt demand.
Traders and refiners are awaiting latest OSPs from top Middle Eastern exporters to gauge the demand outlook for August-loading cargoes as trading for July barrels ends.
August-loading cargoes will start trading by the middle of this month.
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