Saudi Arabia May Raise October Asia Oil OSP by $2 to $6 per Barrel

According to Jin10, a Reuters survey showed Saudi Arabia may raise its official selling price for crude sold to Asia in October after Middle East spot crude markets surged on tighter supply and strong demand. The survey of five refinery sources showed that Arab Light, the flagship grade, is expected to be priced at parity with the Oman/Dubai average or at a premium of up to $4 per barrel, implying an increase of $2 to $6 per barrel from September. Saudi Arabia's September OSP was at a discount, the lowest level in six years. The expected price increase comes after Middle East spot crude markets strengthened sharply, with the Dubai crude spot premium to swaps rising to $13.58 per barrel on August 21, the highest since late May. The average premium this month was about $9.71 per barrel, compared with just $1.26 per barrel in July, and Oman crude spot differentials also strengthened by a similar magnitude.