Saudi Arabia Increases Price for Arab Light Crude to Asia

Saudi Arabia Increases Price for Arab Light Crude to Asia

Saudi Arabia, the world's top oil exporter, raised prices for its flagship crude for Asian buyers for the first time in six months amid an expectation of oil demand recovery, especially from China, according to Reuters.

Informed sources reported Monday that the official selling price (OSP) of Arab Light crude, March loading to Asia, rose 20 cents per barrel from February to $2 per barrel over the average of Oman and Dubai oil, contrary to previous market forecast to drop 30 cents.

"The OSP is quite unexpected. I think it indicates that Saudi is bullish on oil demand," a Singapore-based oil trader told Reuters.

The Executive Director of the International Energy Agency, Fatih Birol, expected that about half of the global oil demand growth, this year will come from China.

Analysts and traders have forecast China's oil demand to rebound from March alongside its economic recovery and the conclusion of a peak in COVID-19 infections in the country.

The OSP for Arab Extra Light was reduced by $1.30 to $2.25 a barrel over Oman/Dubai quotes, and for Arab Medium and Arab Heavy, they were both increased by 50 cents to $1.60 a barrel and minus $1.75 a barrel, respectively.

Oil prices rose on Monday, buoyed by