April 29, 2024 10:39 GMT
Saudi to Raise OSPs for Heavier Grades More than Arab Extra Light in June
OIL
Saudi Aramco may raise the Arab Light OSP to Asia by $0.70-$0.90/bbl in June to a five month high according to a Reuters survey of seven refining sources.
- The rise is expected after Middle East benchmarks strengthened this month and with tight supply suggested by a wider backwardation.
- OSPs for Arab Medium and Arab Heavy are expected to rise in line with Arab Light, supported by tight supply due to OPEC+ cuts and robust fuel oil margins.
- A smaller increase of $0.30-$0.50/bbl is expected for Arab Extra Light amid strong light crude supply and weak naphtha margins. Kpler data showed Murban crude exports rose to a record in April as ADNOC started processing Upper Zakum crude at the Ruwais refinery.
- A Bloomberg survey earlier suggest Arab Light is expected to rise by $0.70/bbl in June from +$2.0/bbl for May sales.
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