(Changes source, adds OSPs in other regions, table)
By Muyu Xu
SINGAPORE, Feb 6 (Reuters) - Saudi Arabia, the world's
top oil exporter, raised prices for its flagship crude for Asian
buyers for the first time in six months amid an expectation of
oil demand recovery, especially from China.
The official selling price (OSP) for March-loading Arab
Light to Asia was raised by 20 cents a barrel from February to
$2.00 a barrel over Oman/Dubai quotes, Aramco said
late on Monday, beating a market forecast of a 30 cent cut.
"The OSP is quite unexpected. I think it indicates that
Saudi is bullish on oil demand," said a Singapore-based oil
trader.
The International Energy Agency's Executive Director Fatih
Birol expects that about half of the growth in global oil demand
this year will come from China.
Analysts and traders have forecast China's oil demand to
rebound from March alongside its economic recovery and the
conclusion of a peak in COVID-19 infections in the country.
The OSP for Arab Extra Light was reduced by $1.30 to $2.25 a
barrel over Oman/Dubai quotes, and for Arab Medium and Arab
Heavy they were both increased by 50 cents to $1.60 a barrel and
minus $1.75 a barrel, respectively.
For other regions, the top oil exporter set its Arab Light
OSP to northwest Europe at 50 cents a barrel above ICE Brent for
March, $2.00 a barrel higher than its price for February.
Meanwhile, the OSP to the United States was raised by 30
cents from last month at $6.65 versus ASCI for March.
Saudi term crude supplies to Asia are priced as a
differential to the Oman/Dubai average:
MAR FEB CHANGE
SUPER LIGHT +5.95 +4.95 +1.00
EXTRA LIGHT +2.25 +3.55 -1.30
LIGHT +2.00 +1.80 +0.20
MEDIUM +1.60 +1.10 +0.50
HEAVY -1.75 -2.25 +0.50
Prices at Ras Tanura destined for United States are
set against ASCI:
MAR FEB CHANGE
EXTRA LIGHT +8.20 +8.20 0.00
LIGHT +6.65 +6.35 +0.30
MEDIUM +6.45 +6.15 +0.30
HEAVY +6.00 +5.70 +0.30
Prices at Ras Tanura destined for Northwest Europe
are set against ICE Brent:
MAR FEB CHANGE
EXTRA LIGHT +1.60 -0.40 +2.00
LIGHT +0.50 -1.50 +2.00
MEDIUM -0.80 -2.80 +2.00
HEAVY -3.90 -5.90 +2.00
Prices at Ras Tanura for Saudi oil destined for the
Mediterranean are set against ICE Brent:
MAR FEB CHANGE
EXTRA LIGHT +2.00 0.00 +2.00
LIGHT +0.50 -1.50 +2.00
MEDIUM -0.50 -2.50 +2.00
HEAVY -4.40 -6.40 +2.00
(Reporting by Muyu Xu; Editing by Louise Heavens, Sharon
Singleton, and Uttaresh.V)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.