Saudi crude price expected to rise

The world’s leading oil exporter Saudi Arabia may increase prices of light crude grades to Asia in December, boosted by a recovery in distillate margins and spot premiums for Middle Eastern oil this month, trade sources disclosed on Friday.

Following two straight months of price cuts, state-owned oil giant Saudi Aramco may increase the official selling price (OSP) for flagship Arab Light crude by 30 cents to 90 cents in December, according to six respondents in a survey by Reuters.

The price increase followed refiners’ efforts to boost production to meet higher demand as countries rolled back COVID-19 restrictions amid increasing oil consumption in the power sector and a global shortage in coal and natural gas.

However, the survey’s wide range of values suggested uncertainty over how much Saudi Aramco will mark prices based on their pricing formula.

Arab Heavy’s OSP is expected to hold steady or increase, while Arab Medium’s OSP is anticipated to rise.