Aramco August Asia OSPs jump, Arab Light near record at +$9.30/b

Quantum Commodity Intelligence - Saudi Aramco has sharply hiked its Official Selling Prices (OSPs) on August-loading crude oil for Asia, largely in line with expectations following the steep increase in the backwardation of the underlying Dubai benchmark and buoyant refining margins.

For Aramco's key customer base in Asia, differentials for the flagship Arab Light were set at Platts Dubai/DME Oman +$9.30/b for loading next month, compared to +$6.50/b in July and the record +$9.35/b in May.

Other grades followed suit, with Arab Medium up to $7.15/b from +$6.15/b and Arab Heavy at +$5.30/b versus +$4.80/b in July - the heavier barrels hit by weak HSFO margins. 

August Arab Extra Light was set at a record $10.65/b versus Dubai/Oman, versus +$7.15/b in July, while Super Light was also at a record $11.35/b, versus $8.50/b, as lighter crude benefitted from June's record distillate and gasoline cracks. 

According to Quantum data, the key M1/M3 Dubai cash spread, closely monitored by Aramco, averaged $7.54/b in June compared to $5.13/b in May.

However, sources familiar with Saudi OSP methodology said a greater weighting is applied towards the end of the month, which averaged more than $8/b for the period of June 20 to June 30, according to Quantum data.

For Northwest Europe, Arab Light was increased by $1/b to +$5.30/b over ICE Brent futures, while Medium was up to +$0.50/b to +$1.80/b.

Arab Light crude oil for August to the US was unchanged at +$5.65/b over ASCI (Argus Sour Crude Index).