07/03/2011
Saudi Aramco Raises April Oil Prices for Asia and NW Europe
Saudi Aramco, the world’s largest oil exporter, raised official selling prices for all crude grades for customers in Asia and Northwest Europe for April shipments and cut prices for customers in the U.S.
Saudi Arabia’s state-owned producer increased the formula prices for Arab Extra Light, Light and Medium crudes to Asia by 65 cents a barrel, a person familiar with the pricing decision said today. Arab Light to Asia will sell at the highest since July 2008 at $1.95 a barrel above the average of the Oman and Dubai grades, the two Gulf benchmarks used by traders.
Six officials at refineries in Asia polled by Bloomberg said they expected a price increase reflecting gains in fuel processing profits. The difference between gasoil and fuel oil prices, the so-called black-white spread, rose to the widest since 2008, suggesting refiners with the ability to break fuel oil into higher value oil products are earning more.
Arab Super Light to Asia will increase by 25 cents a b
arrel, to $6.05 a barrel above the Oman and Dubai average and Extra Light will rise to a $3.95 a barrel premium.
Aramco set the price for its Extra Light crude oil for April loadings for U.S. buyers at a premium of $2.60 a barrel over the Argus Sour Crude Index, 10 cents lower than March cargoes. The price of Arab Light crude to the U.S. will be at parity with the Argus index, 30 cents a barrel lower than March.
