Saudi Aramco maintains Arab Light OSP for Asia at +$4/b

Quantum Commodity Intelligence – Saudi Aramco left Official Selling Prices (OSPs) on its flagship Arab Light crude for December-loading to Asia, after confirming output cuts would remain for the rest of the year.

OSPs lighter grades to Asia were adjusted upwards, while heavier grades were cut, but overall OSPs were towards the higher end of expectations.

Saudi Arabia reiterated over the weekend it would extend its voluntary crude oil production cut of 1 million bpd until the end of the year, while Russia also confirmed it was reducing exports by 300,000 bpd until December.

For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were unchanged to Platts Dubai/DME Oman +$4/b.

Arab Medium was reduced $0.10/b at +$3.35/b, while Arab Heavy was reduced to +$0.40/b from +$1.70/b following the plunge in HSFO cracks.

Arab Extra Light was set at $4.05/b over Dubai/Oman versus $3.35/b for November, which came in slightly above expectations even though gasoline cracks improved.  

The key M1/M3 Dubai cash spread, closely monitored by Saudi Aramco and other Middle East National Oil Companies (NOCs), averaged $1.46/b in October compared to $2.48/b in September, a move that would usually signal a reduction in Asian OSPs.

The Quantum average price for Dubai was $89.78/b for December-loading barrels versus $93.31/b on November-loading crude, a fall of 3.8%, coming after the Middle East benchmark increased by over 7% in each of the previous three months.

For Northwest Europe, Arab Light was set at +$4.90/b versus ICE Brent futures, compared to +$7.20/b on November-loading crude, while Medium was set at +$3.70/b versus +$6/b for October.

The Brent/Dubai cash spread averaged minus $0.54/b in October, narrowing from -$0.88/b in September.

Arab Light for August to the US Gulf was unchanged at +$7.45/b over ASCI (Argus Sour Crude Index), while Medium was at +$8.15/b and Heavy at +$7.70/b, also both unchanged on the month.