Very usefull links


News links




Dow Jones

Oil price



Views and News





S. Arabia keep February Arab Light crude to Asia near three-year high




By Florence Tan

Petroleumworld 01 05 2018

Top oil exporter Saudi Arabia is expected to keep the February price for Arab Light crude steady, close to the highest in more than three years, while lowering prices for medium and heavy grades, a survey by Reuters showed on Tuesday.

Robust spot crude demand and stronger margins for middle distillates will underpin Saudi crude prices, but the producer was unlikely to raise prices further as Asia's “demand is expected to fall because of spring maintenance”, one of the four respondents said in the survey.

The official selling price (OSP) for Saudi's flagship Arab Light crude could pause in February, after rising in January for the fifth straight month to its highest since September 2014, the survey showed.

Backwardation between first and third month cash Dubai was relatively unchanged in December from the previous month, the respondents said. In a backwardated market, prompt prices are higher than those in future months, indicating strong demand for immediate supplies.

A widening of Brent's premium to Dubai reduced arbitrage supplies from the Atlantic Basin and spurred Asia's demand for Middle East and Russian crude, pushing spot premiums for these grades in February to multi-month highs.

Still, Saudi Aramco could trim February prices for Arab Medium and Arab Heavy on weaker returns from fuel oil production, the respondents said. The average fuel oil margins in Asia fell about 50 percent in December from the previous month, Reuters data showed. Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million barrels per day (bpd) of crude bound for Asia.

Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs.


Jan Feb Change

Arab Super Light 5.75 5.95 0.20

Arab Extra Light 3.05 3.15 0.10

Arab Light 1.65 1.65 0.00

Arab Medium 0.25 0.05 -0.20

Arab Heavy -1.05 -1.25 -0.20


Story by Florence Tan; Editing by Tom Hogue from Reuters. 01 04 2017

We invite all our readers to share with us
their views and comments about this article.
Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels






Editor & Publisher:Elio Ohep/
Contact Email:

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.