Saudi Aramco lifts official May crude prices

Saudi Aramco lifts official May crude prices

London, 4 April (Argus) — Saudi Arabia's state-controlled Saudi Aramco has raised the official formula prices of all its May-loading crude exports.

The formula price for Arab Light, Arab Medium and Arab Heavy cargoes heading to Saudi Arabia's core Asia-Pacific market next month have been increased by $4.40/bl each compared with April, broadly in line with market expectations. Aramco had been expected to lift the May price for Arab Light exports to Asia-Pacific by $4-5/bl, depending on the impact of pandemic-related lockdowns on Chinese demand.

Some market sources had expected prices for Arab Medium and Arab Heavy to be raised by the same amount as Arab Light, although others anticipated a slightly smaller increase on the back of lower demand from India, where refiners have been buying heavily discounted medium sour Russian Urals.

A sharp month-on-month rise in Saudi prices for Asian customers was widely anticipated given the potential for supply disruptions in Russia and the effect that might have on pushing up overall Asian demand for Mideast Gulf grades. The Saudi price hike also comes at a time of deteriorating arbitrage economics for eastbound cargoes from the Atlantic Basin. The front-month Brent-Dubai EFS — or Ice Brent's premium to Dubai swaps and