Saudi Oil Buyers in Asia May Seek Alternatives After Price Hike
- Other Middle Eastern and U.S. crudes becoming more affordable
- Kingdom jacked up prices even after U.S. announced big release
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Asian oil buyers will likely purchase more U.S. and Middle Eastern crude on the spot market and may take less contracted supplies from Saudi Arabia after the kingdom hiked its prices to a record.
Omani crude was selling for $4 to $4.50 a barrel above its benchmark price on the Dubai Mercantile Exchange this week. That compares with the official selling price for Arab Light, which is now at a $9.35 premium to an average of Oman and Dubai prices. Long-haul flows from the U.S. have also become more viable following the announcement of the strategic reserves release.