Saudi Aramco Raises March Oil-Price Differentials to Europe, Cuts to U.S.
Saudi Aramco CEO Khalid Al-Falih
Chris Ratcliffe/Bloomberg
Saudi Aramco CEO Khalid Al-Falih listens during a session on day one of the World Economic Forum (WEF) in Davos.
Saudi Aramco CEO Khalid Al-Falih listens during a session on day one of the World Economic Forum (WEF) in Davos. Photographer: Chris Ratcliffe/Bloomberg
Saudi Arabian Oil Co., the world’s largest crude exporter, raised differentials used in determining its official selling prices for all grades to customers in Northwest Europe and the Mediterranean for shipments in March.
The state-owned producer, known as Saudi Aramco, increased the premium for Arab Super Light (PGCRSRLT) crude to Asia by 10 cents a barrel to $4.20 above the average of Oman and Dubai grades, the Gulf benchmarks used by traders in Asia, while cutting Asian differentials for four other grades. Aramco reduced all premiums and discounts for U.S. buyers, the company said in an e-mailed statement today.
Persian Gulf oil producers such as Saudi Arabia sell most of their crude under long-term contracts to refiners. Most of the region’s state oil companies price their crude at a premium or discount to a benchmark.
The following table gives differentials for the regions into which Aramco sells in relation to benchmark prices, the month-on-month change and the degrees of gravity as defined by the American Petroleum Institute. Differentials are in U.S. dollars a barrel.
United States Variety API March February Change Extra Light 38.5 +1.85 +2.20 -0.35 Arab Light 32.5 -0.05 +0.25 -0.30 Arab Medium 31 -2.15 -1.90 -0.25 Arab Heavy 27 -3.75 -3.60 -0.15 ---------------------------------------------------- Prices for customers in the U.S. are expressed as a differential to the Argus Sour Crude Index published by Argus Media Ltd. Asia Variety API March February Change Super Light 50.6 +4.20 +4.10 +0.10 Extra Light 38.5 +3.10 +3.55 -0.45 Arab Light 32.5 +1.55 +2.05 -0.50 Arab Medium 31 +0.25 +0.75 -0.50 Arab Heavy 27 -0.85 -0.45 -0.40 ---------------------------------------------------- Prices for customers in Asia are expressed as a differential to the average of Oman and Dubai grades, the two Arabian Gulf benchmarks used by Asian oil traders. The Dubai and Oman price assessments are published by Platts, the energy-information division of McGraw-Hill Cos. Northwest Europe Variety API March February Change Extra Light 38.5 +1.55 +0.70 +0.85 Arab Light 32.5 -0.85 -1.75 +0.90 Arab Medium 31 -2.40 -3.55 +1.15 Arab Heavy 27 -4.30 -5.55 +1.25 --------------------------------------------------- Mediterranean Variety API March February Change Extra Light 38.5 +1.45 00.00 +1.45 Arab Light 32.5 -1.10 -2.20 +1.10 Arab Medium 31 -2.45 -3.80 +1.35 Arab Heavy 27 -4.40 -5.80 +1.40 --------------------------------------------------- Prices for Northwest European and Mediterranean customers are expressed as a differential to the Brent weighted average posted by Intercontinental Exchange, free on board Ras Tanura.
To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net.
To contact the editors responsible for this story: Stephen Voss on sev@bloomberg.net.
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