Saudi Aramco Raises All June Crude Price Differentials to U.S.

Saudi Arabian Oil Co., the world’s largest crude exporter, raised differentials used in determining its official selling prices for all crude grades to customers in the U.S. by 80 cents a barrel each and increased levels for its two lightest blends to buyers in Asia for June.

The state-owned producer, known as Saudi Aramco, boosted the June premium for Arab Medium for U.S. buyers to $1 a barrel more than the Argus Sour Crude Index, from 20 cents over the benchmark for May, the company said today in an e-mailed statement. The premium will be the highest for the blend since April 2009, according to data compiled by Bloomberg.

Saudi Aramco widened the discount for the same grade to be shipped to buyers in Asia next month by 40 cents a barrel, to 55 cents less than the average of Oman and Dubai grades, the Gulf benchmarks. The company raised June premiums for its Super and Extra Light grades to buyers in Asia.

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 oil 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. Prices are in U.S. dollars per barrel.

U.S.

Variety        API      June         May           Change
Extra Light    38.5     +4.90        +4.10         +0.80
Arab Light     32.5     +3.25        +2.45         +0.80
Arab Medium    31       +1.00        +0.20         +0.80
Arab Heavy     27       -0.55        -1.35         +0.80
----------------------------------------------------

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      June         May           Change
Super Light    50.6     +6.45        +6.15         +0.30
Extra Light    38.5     +4.00        +3.90         +0.10
Arab Light     32.5     +1.65        +1.85         -0.20
Arab Medium    31       -0.55        -0.15         -0.40
Arab Heavy     27       -3.55        -2.90         -0.65
-----------------------------------------------------

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.

Northwestern Europe

Variety        API      June         May           Change
Extra Light    38.5     -0.45        -0.95         +0.50
Arab Light     32.5     -2.45        -2.35         -0.10
Arab Medium    31       -4.40        -4.00         -0.40
Arab Heavy     27       -6.15        -5.55         -0.60

-----------------------------------------------------

Mediterranean

Variety        API      June         May           Change
Extra Light    38.5     +0.60        +0.70         -0.10
Arab Light     32.5     -1.85        -1.85         00.00
Arab Medium    31       -3.80        -3.55         -0.25
Arab Heavy     27       -6.25        -5.75         -0.50
------------------------------------------------------

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: Alaric Nightingale at anightingal1@bloomberg.net Andrea Snyder

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