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OIL: Saudi OSP Increases Exceed Bloomberg Survey

OIL
Energy BulletsBulletCommodities

The Saudi increase in OSPs to Asia for March are a response to improving refinery margins and surging premiums of Middle East crude, Bloomberg said.

  • Aramco raised the price of its Arab Light oil to Asia for March by $2.40/b, according to a price list seen by Bloomberg, the largest increase since August 2022.
  • The gain is larger than the $2/b hike expected by traders and refiners surveyed by Bloomberg.
  • Tough US sanctions on Russian oil last month sent Asia’s refiners rushing to buy replacement cargoes.
  • The barrels that are closest in both geography and quality are pumped in the Middle East, leading to a surge in premiums for the region’s crude relative to other international benchmarks.
  • Refining margins have also improved in recent weeks, following some processors cutting back production, also helping to justify the large increase.
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The Saudi increase in OSPs to Asia for March are a response to improving refinery margins and surging premiums of Middle East crude, Bloomberg said.

  • Aramco raised the price of its Arab Light oil to Asia for March by $2.40/b, according to a price list seen by Bloomberg, the largest increase since August 2022.
  • The gain is larger than the $2/b hike expected by traders and refiners surveyed by Bloomberg.
  • Tough US sanctions on Russian oil last month sent Asia’s refiners rushing to buy replacement cargoes.
  • The barrels that are closest in both geography and quality are pumped in the Middle East, leading to a surge in premiums for the region’s crude relative to other international benchmarks.
  • Refining margins have also improved in recent weeks, following some processors cutting back production, also helping to justify the large increase.