As reported by Reuters, top oil exporter, Saudi Arabia may raise its official selling prices in the Asian market in January. It is tracking strong base price as some crude baron increased their productivity to meet higher winter demand.
Six sources at Asian refiners expect to rise January OSP for Saudi flagship crude grade Arab light by 65 cents, average a barrel. The forecasts range from 50 cents to 85 cents. The crude prices will be higher for Saudi lighter grade than a heavier one. That means middle distillates, gas oil, and jet fuel will be more profitable for refiners.
Strong demand for sport crude has raised November average differentials to Dubai swaps for benchmark cash Dubai and DME Oman by 80 cents a barrel since last month.
In November, Indian Oil Corp purchased crude as fuel demand recovered as the weather forecast was pointing to a harsher winter.
Interestingly, Saudi crude OSPs are released around the fifth of each month and it helps in setting trends for Iranian, Kuwaiti, and Iraqi prices. This affects more than 12 million barrels per day of crude bound for Asia.
Saudi Aramco officials do not comment on the kingdom’s monthly OSPs.