Saudi cuts February OSPs for Asia, Arab Light down $1.10/b +$2.20/b

Quantum Commodity Intelligence - Saudi Aramco has cut its Official Selling Prices (OSPs) for February-loading crude oil for Asia, broadly in line with market expectations following the narrower market backwardation last month. 

For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were cut by $1.10/b versus Platts Dubai/DME Oman to +$2.20/b, while Arab Medium was cut by $1.00/b to +$2.05/b and Arab Heavy down by $1.10/b to +$0.70/b.

Arab Extra Light was reduced by $1.30/b to Dubai/Oman +$3.20/b

The cuts came as backwardation in the key M1/M3 Dubai cash spread, which is closely monitored by Aramco, narrowed sharply during December.

In the final week of December, M1/M3 (Feb22/Apr22) narrowed to below $1/b, whereas the M1/M3 spread was around $3/b in late November, prompting a sharp rise in January OSP differentials.

According to Quantum data, M1/M3 Dubai averaged $1.52/b in December compared to $3.34/b in November.

Asia

Arab Extra Light   Dubai/Oman +3.20

Arab Light            Dubai/Oman +2.20

Arab Medim         Dubai/Oman +2.05

Arab Heavy          Dubai/Oman +0.70

Mediterranean

Arab Extra Light  ICE Brent +0.50

Arab Light            ICE Brent -1.40

Arab Medim         ICE Brent -2.00

Arab Heavy          ICE Brent -3.00

Northwest Europe

Arab Extra Light  ICE Brent -0.10

Arab Light            ICE Brent -1.80

Arab Medim         ICE Brent -2.00

Arab Heavy          ICE Brent -3.30

US Gulf

Arab Extra Light  ASCI +3.50

Arab Light            ASCI +2.15

Arab Medim         ASCI +1.45

Arab Heavy          ASCI +1.00