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.