Saudi Arabia Poised for Record Heavy-Crude Premiums on Fuel Oil
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Rising demand for fuel oil is allowing Saudi Arabia, the world’s biggest exporter, to sell its lowest-grade crude at record premiums to buyers in Asia.
Saudi Arabian Oil Co., the state-owned producer, is likely to offer Arab Heavy oil for January at 25 cents a barrel more than benchmark Oman and Dubai crude when prices are announced next week, up 50 cents from December, according to the median estimate of nine refiners surveyed by Bloomberg. Arab Medium may be set at a premium of $1.60, or 40 cents higher. That would be a record for the two grades and the first time Arab Heavy is sold at a higher price than its marker.