Aramco cuts Asia December OSPs, Arab Light set at +$5.45/b

4 Nov 2022

Quantum Commodity Intelligence - Saudi Aramco has cut its Official Selling Prices (OSPs) for most December-loading crude to Asia, largely in line with expectations after backwardation in the underlying Dubai benchmark narrowed last month.

For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were cut to Platts Dubai/DME Oman +$5.45/b for loading next month, versus +$5.85/b for November cargoes.

The key M1/M3 Dubai cash spread, which is closely monitored by Saudi Aramco and other Middle East National Oil Companies (NOCs), averaged $4.75/b in October compared to $5.36/b in September, according to Quantum data.

Arab Medium was cut to +$3.20/b from +$4/b, while Arab Heavy was set at +$1.25/b versus +$2.45/b for November barrels as sluggish fuel oil cracks weighed on heavier barrels.

December Arab Extra Light was lifted to $6.45/b over Dubai/Oman versus +$6.35/b for November-loading barrels, as distillates and light-end cracks showed signs of improvement.

Quantum's monthly average price for December-loading Dubai was $91.13/b, a marginal gain of 0.25%.

For Northwest Europe, Arab Light was up $0.80/b at +$1.70/b over ICE Brent futures, while Medium was unchanged at -$1.30/b, both at the higher end of expectations but reflecting stronger demand from Europe as refiners there look for replacement Russian barrels.  

The Brent/Dubai cash spread widened to an average of $2.13/b, compared to the Nov22 contract average of $0.24/b, as the spread rebounded in Brent’s favour.

Arab Light for December to the US was unchanged at +$6.35/b over ASCI (Argus Sour Crude Index), while Medium unchanged at +$6.15/b and Heavy at +$5.70/b, also unchanged.