Oil & Gas

Saudi Aramco has raised the official selling price (OSP) for its benchmark Arab Light crude by $0.20 for exports to Asia in June, ending a two-month trend of price cuts. The new price is set at $1.40 per barrel above the average of Oman and Dubai crude prices, a move that comes despite ongoing concerns in global oil markets, including rising supply and a fragile demand outlook. This pricing adjustment signals a shift in strategy by the state owned oil giant, as it navigates the complex landscape of fluctuating oil prices. The price change reflects a broader market trend, with Saudi Aramco taking into account feedback from refiners and evaluating crude oil value shifts over the past month.

This decision to increase prices comes shortly after the OPEC+ alliance, which includes both OPEC members and key non-OPEC countries such as Russia, announced its plan to boost oil production by 411,000 barrels per day in June. The decision to increase output for the second consecutive month has drawn attention to the supply dynamics that could affect global oil prices, with market observers keenly awaiting the outcome of the upcoming OPEC+ meeting. Saudi Aramco’s pricing decisions are critical as they impact the cost of around 9 million barrels of crude oil exported daily to Asia, setting a benchmark for other regional producers like Iran, Kuwait, and Iraq.