Aramco increases April OSPs, Arab Light at Dubai/Oman +$2.50/b

6 Mar 2023

Quantum Commodity Intelligence - Saudi Aramco has increased Official Selling Prices (OSPs) for April-loading crude to Asia, largely in line with expectations after market structure in the underlying Dubai benchmark increased last month.

For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were lifted to Platts Dubai/DME Oman +$2.50/b for loading next month versus +$2.00/b for March cargoes.

The key M1/M3 Dubai cash spread, closely monitored by Saudi Aramco and other Middle East National Oil Companies (NOCs), averaged $2.03/b in February compared to $1.12/b in January, according to Quantum data,

Arab Medium was increased to +$2.50/b from +$1.60/b, while Arab Heavy was set at +$0.75/b versus -$1.75/b for April cargoes, after heavier barres continued to strengthen with the recovery in high sulfur fuel oil cracks.

April Arab Extra Light was set at $2.70/b over Dubai/Oman, versus +$2.25/b last month, also in line with expectations.  

Quantum's monthly average price for April-loading Dubai was $82.10/b, a gain of 2.1%.

That compares with $80.38/b for March-loading crude and the 14-year high of $113.24/b for August-loading barrels traded last June.

For Northwest Europe, Arab Light was set at +$1.00/b versus ICE Brent futures, compared to +$0.50/b for March, while Medium was increased to +$0.50/b from -$0.80/b.

The Brent/Dubai cash spread crunched to an average of $1.65/b, compared to last month's average of $3.14/b.

Arab Light for April to the US was up $0.10/b +$6.65/b over ASCI (Argus Sour Crude Index), while Medium was at +$6.45/b and Heavy at +$6.00/b, both unchanged.