By Muyu Xu
SINGAPORE, March 6 (Reuters) - Top crude exporter Saudi
Arabia raised prices for the flagship Arab light crude it sells
to Asia for a second month in April, to $2.50 a barrel above the
Oman/Dubai average, Aramco said on Sunday night.
The price hike - 50 cents a barrel higher than the March
official selling prices - is in line with a Reuters survey, as
signs of an economic rebound in China raised expectation for a
pickup in fuel demand from the world's top oil importer.
China set a modest economic growth target of around 5% for
this year at its annual National People's Congress. The world's
second-largest economy posted one of its weakest performances in
decades last year when gross domestic product grew by just 3%.
The market is surprised by Saudi Arabia's price setting on
Arab Heavy, a medium sour crude containing more sulphur than
Arab Light. The official selling price (OSP) for Arab Heavy is
$0.75 a barrel above the Oman/Dubai average, up $2.5 a barrel
from March.
The price hike comes as several new refineries will soon
come online, which would lead to supply tightness, especially
considering its production is smaller than other crude in Saudi,
said a Singapore-based oil trader.
PetroChina is preparing to start its 400,000
barrels-per-day refinery in the southern Chinese province
Guangdong, which has been designed to refine heavy grades such
as Arab Heavy.
For other regions, the top oil exporter set its Arab Light
OSP to northwest Europe at $1 a barrel above ICE Brent for
April, 50 cents a barrel higher than its price for March.
Meanwhile, the OSP to Mediterranean was raised by 30 cents
from last month at $0.80 versus ICE Brent for April.
Saudi term crude supplies to Asia are priced as a
differential to the Oman/Dubai average:
APRIL MARCH CHANGE
EXTRA LIGHT +2.70 +2.25 +0.45
LIGHT +2.50 +2.00 +0.50
MEDIUM +2.50 +1.60 +0.90
HEAVY +0.75 -1.75 +2.50
Prices at Ras Tanura destined for United States are
set against ASCI:
APRIL MARCH CHANGE
EXTRA LIGHT +8.20 +8.20 0.00
LIGHT +6.65 +6.65 0.00
MEDIUM +6.45 +6.45 0.00
HEAVY +6.00 +6.00 0.00
Prices at Ras Tanura destined for Northwest Europe
are set against ICE Brent:
APRIL MARCH CHANGE
EXTRA LIGHT +1.60 +1.60 0.00
LIGHT +1.00 +0.50 +0.50
MEDIUM +0.50 -0.80 +1.30
HEAVY -2.60 -3.90 +1.30
Prices at Ras Tanura for Saudi oil destined for the
Mediterranean are set against ICE Brent:
APRIL MARCH CHANGE
EXTRA LIGHT +2.10 +2.00 +0.10
LIGHT +0.80 +0.50 +0.30
MEDIUM +0.50 -0.50 +1.00
HEAVY -3.10 -4.40 +1.30
(Reporting by Muyu Xu; Editing by Subhranshu Sahu)
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