Aramco lifts March OSP for Arab Light to Dubai/Oman +$2/b

6 Feb 2023

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

For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were lifted to Platts Dubai/DME Oman +$2.00/b for loading next month versus +$1.80/b for February cargoes.

The key M1/M3 Dubai cash spread, closely monitored by Saudi Aramco and other Middle East National Oil Companies (NOCs), averaged $1.12/b in January compared to $1.26/b in December, according to Quantum data, but has since recovered to around $2/b this month.

Arab Medium was increased to +$1.60/b from +$1.10/b, while Arab Heavy was set at -$1.75/b versus -$2.25/b for February cargoes after fuel oil cracks improved.

March Arab Extra Light was cut to $2.25/b over Dubai/Oman, versus +$3.55/b last month, slightly below expectations.  

Quantum's monthly average price for March-loading Dubai was $80.38/b, a gain of 4.1%. That compares with $77.19/b for February-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 +$0.50/b versus ICE Brent futures, compared at -$1.50/b for February, while Medium was increased to -$0.80/b from -$2.80/b.

The Brent/Dubai cash spread narrowed to an average of $3.14/b, compared to last month's average of $4.14/b, as concerns over oil shortages in Europe receded.

Arab Light for March to the US was set at +$6.55/b over ASCI (Argus Sour Crude Index), while Medium was at +$6.45/b and Heavy at +$6.00/b, all up on the month.