Saudi Arabian Oil Co., the largest crude exporter, raised the premium used to determine June official selling prices for its Arab Light blend for customers in Asia and cut premiums for other light grades to the Far East.
The state-owned producer, known as Saudi Aramco, increased the monthly premium for the Light blend by 20 cents a barrel to $2 more than the average of Oman and Dubai grades, the company said today in an e-mailed statement. The discount for Arab Heavy to Asia narrowed by 70 cents a barrel to 70 cents a barrel less than the Gulf benchmarks.
The Light blend’s increase met the median expectations of five refiners in China and Japan surveyed by Bloomberg News last week. The spread between Light and Heavy crudes fell to $2.70 a barrel, according to Bloomberg calculations.
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.
Saudi Aramco cut the premium for the Super Light grade to Asia by $1.10 a barrel, to $3.70 a barrel more than the benchmarks, and cut Extra Light by $0.25 a barrel, to a $2.65 a barrel premium.
Arab Light crude to the U.S. was cut $0.25 a barrel, to a $0.35 a-barrel premium to the Argus Sour Crude Index, according to the statement. The discount for June shipments of Arab Light crude to Northwest Europe narrowed by $1.45 a barrel, to $1.65 a barrel less than the Brent benchmark, according the statement.