Last week Saudi Arabia and the UAE raised their official selling prices (OSPs) for December, Platts reports.
The OSPs for Saudi Arabia’s Asia-bound crudes rose across the board. It raised December OSPs for Arab Extra Light, Arab Light, Arab Medium, and Arab Heavy by $0.65 per barrel. The OSP for Arab Super Light rose by $0.45, according to Platts.
Saudi Arabia is asking a premium of $1.25 over the Platts’ Oman-Dubai benchmark for its Arab Light. It cut its discount on Arab Heavy to $1.15 per barrel, its lowest discount rate since December 2013. For its Arab Medium, Saudi Arabia eliminated its discount on the grade for the first time since August 2014, Platts reports.
The UAE’s OSPs also rose.
For December, the UAE is offering the Murban and Das Blend crudes at premiums of $2.55 and $2.20 per barrel, according to Platts, a jump of $0.52. Its OSP for the Upper Zakum crude also rose, but at a slower pace. The Abu Dhabi National Oil Company (ADNOC) raised the Upper Zakum OSP by $0.42 per barrel, offering the crude at a $0.65 premium over the Oman-Dubai benchmark.
“The OSPs [are] all pretty high, [the producers have been] pretty aggressive, [but] they can because the margins are good and demand is too – we are going into peak run [season],” an oil trader told Platts.
The price uptick had been expected. A recent survey of Asian oil refiners conducted by Reuters indicated that OSPs for Asian sales were set to rise in December.