Saudi Arabia hikes June crude oil prices for most regions

Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, a statement from Aramco showed on Sunday, signaling expectations of strong demand this summer.

The world's top exporter hiked its flagship Arab Light crude oil price to Asia to $2.90 a barrel above the Oman/Dubai average in June, the highest since January.

It also raised the June Arab light crude prices to northwest Europe and the Mediterranean to $2.10 and $2 a barrel above ICE Brent, respectively, while keeping the price in the United States unchanged at $4.75 a barrel above ASCI.

The price hikes for most Saudi crude grades in Asia were at the higher end of traders' expectations in a Reuters survey. Some traders questioned the ability of Asian refiners to absorb higher Saudi crude costs as refining margins in Asia dropped nearly $2 a barrel in April from March.

State oil giant 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 crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia.

Saudi term crude supplies to Asia are priced as a differential to the Oman/Dubai average: JUNE MAY CHANGE SUPER LIGHT 3.45 2.95 0.50 EXTRA LIGHT 2.80 2.10 0.70 LIGHT 2.90 2.00 0.90 MEDIUM 2.35 1.35 1.00 HEAVY 1.60 0.50 1.10 Prices at Ras Tanura destined for United States are set against ASCI: JUNE MAY CHANGE EXTRA LIGHT 7.00 7.00 0.00 LIGHT 4.75 4.75 0.00 MEDIUM 5.45 5.65 -0.20 HEAVY 5.10 5.30 0.20 Prices at Ras Tanura destined for Northwest Europe are set against ICE Brent: JUNE MAY CHANGE EXTRA LIGHT 3.70 2.00 1.70 LIGHT 2.10 0.30 1.80 MEDIUM 1.30 -0.40 1.70 HEAVY -1.10 -2.80 1.70 Prices at Ras Tanura for Saudi oil destined for the Mediterranean are set against ICE Brent: JUNE MAY CHANGE EXTRA LIGHT 3.70 1.70 2.00 LIGHT 2.00 -0.10 2.10 MEDIUM 1.40 -0.60 2.00 HEAVY -1.30 -3.30 2.00.

Post-war expansion projects boosted Iraq’s oil refining production by nearly 360,000 barrels-per-day (bpd) in one year, the country’s Oil Minister was quoted on Monday as saying.

Hayan Abdel Ghani said nearly 150,000 bpd were added through expansion of refineries in North Iraq while such projects added around 70,000 bpd in the South and 140,000 bpd in the central Karbala province.

Officials said in 2023 refinery rehabilitation projects would boost the OPEC member’s production to 1.26 million bpd at the end of 2024 and capacity is expected to surge after the completion of new refineries.

Iraq has defended its decision to award Akkas gas field project to Ukraine’s Ukrezemresurs Company following claims that the firm is weak.

In a weekend statement, the Oil Ministry said documents supplied by the company were authorised by Iraq’s embassy in Kiev and Ukraine’s embassy in Baghdad and that the firm has also provided a $50-million bank guarantee.

“There has been continuous criticism against the Oil Ministry’s project and its plans to expand oil and gas output and slash imports of petroleum products,” it said. The Ukrainian company was awarded the development contract in April 2024.

Iraqi Oil Minister Hayan Abdel Ghani said after signing the deal that the project would add 100 million cubic feet per day (mcf/d) in phase 1 and 400 mcf/d when phase 2 is completed after four years.