Saudi Aramco Raises Crude Price Premiums for Asia, Cuts Europe
Saudi Arabian Oil Co., the world’s largest crude exporter, raised most of its January official selling prices for customers in Asia and widened discounts to European buyers.
The state-owned producer, known as Saudi Aramco, boosted premiums for Arab Light and Arab Medium grades by 35 cents to $3.30 and 90 cents a barrel more than the average of Oman and Dubai grades, the benchmark used in Asia. It kept premiums for its Arab Super Light and Arab Extra Light blends unchanged at $8.05 a barrel and $5.65, respectively.
Aramco widened the discount of Arab Light grade for northwest Europe to $1.20 a barrel versus the Brent weighted average, or BWAVE. That compares with minus 20 cents in December. The crude was set at a $1.05 discount in the Mediterranean, compared with 55 cents less than BWAVE the previous month.
Persian Gulf 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.
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