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Saudi Arabia to raise Sept oil price for Asia

Updated August 03, 2013

SINGAPORE, Aug 2: Top oil exporter Saudi Arabia is expected to raise in September the official selling price (OSP) of its flagship Arab light crude to Asia, boosted by tighter supplies and steady demand, a Reuters survey showed on Friday.

Saudi Arabia may raise the OSPs to Asia for both Arab Extra Light and Arab Light by $1 per barrel, while Arab Medium and Arab Heavy may both increase by 50 to 60 cents, the median of estimates from refiners and traders shows. Traders and refiners are assessing the outlook for the October market, which is expected to kick off in a few days, amid expectations of steady demand and reduced supplies.

Iraqi exports are expected to fall sharply, by between 400,000 and 500,000 barrels per day (bpd) in September, due to maintenance. Shipments from Libya and Yemen are also down.

“We expect a rise in Saudi OSPs, considering the expected fall in supplies of Iraqi Basra Light and the current price of Dubai crude in the spot markets,” a source at a Seoul-based refiner said. “The crude oil markets are hot now.”

Brent crude futures climbed on Friday above $110 a barrel for the first time since early April, as upbeat economic data raised the prospects for better global oil demand amid supply disruptions in Africa and Iraq.—Reuters