Prices for Saudi Arabia’s heaviest crude export grades into Asia were raised the most for April as Aramco hiked prices across the board for exports to Asia and Europe in its latest OSPs. The second consecutive price increase (MEES, 10 February) fuels the perception that Saudi Aramco sees strong demand growth in China.
Notably, the gains were focused on its two heaviest grades, Arab Medium (29-32° API, 2.2-2.9% Sulfur) and Arab Heavy (<29° API, >2.9% Sulfur). As a result, Arab Light’s (32-36° API, 1.3-2.2% Sulfur) premium to Arab Medium cargoes to April dropped to $1.75/B for April, the lowest figure since July 2022. Meanwhile Arab Light and Arab Medium were priced at parity for the first time since January 2021. This could be indicative of the ramp-up of Kuwait’s 615,000 b/d Al Zour refinery, which is reducing availability of Kuwait’s comparable 31° export blend (MEES, 10 March). (CONTINUED - 144 WORDS)