Saudi increases to January OSPs for Asia, Arab Light to +$3.30/b

Quantum Commodity Intelligence - Saudi Aramco has increased Official Selling Prices (OSPs) for January-loading crude oil for Asia, broadly in line with market expectations and seen as an indication that the world's largest crude oil exporter sees healthy demand from customers.

For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were hiked by $0.60 per barrel versus Platts Dubai/DME Oman to +$3.30/b, while Arab Medium was increased by $0.70/b to +$3.05/b and Arab Heavy up $0.80/b to +$1.80/b.

Narrower increases were applied to lighter barrels as cracks in Asia for light-ends and distillates retreated in the second half of November.

Arab Extra Light was increased by $0.50/b to Dubai/Oman +$4.50/b and Super Light by $0.30/b to +$6.15/b.

The increases came as backwardation in the key M1/M3 Dubai cash spread, which is closely monitored by Aramco, widened during November. 

According to Quantum data, M1/M3 Dubai averaged $3.34/b in November versus $2.26/b in October.  

Aramco lowered prices for crude bound to Northwest Europe in a range of $0.20/b for Heavy and $1.50/b for Extra Light, against the ICE Brent futures.

Light to Northwest Europe was lowered by $1/b to a $1.30/b discount to ICE Brent, while Medium was decreased by $0.60 cents/b to a $1.70/b discount.

Aramco boosted its Extra Light OSP by $0.60/b to a $3.50/b premium to Argus ASCI for US-bound crudes. Light, Medium and Heavy grades were raised by $0.40/b to respective premiums of $2.15/b, $1.45/b and $1/b.