KSA: Saudi Arabia may raise May crude prices to Asia to new record levels – Gulf Digital News

KSA: Saudi Arabia may raise May crude prices to Asia to new record levels – Gulf Digital News

Top oil exporter Saudi Arabia is expected to raise crude prices to Asia in May to new highs, tracking strong gains in Middle East benchmarks after Western sanctions on Russia disrupted global supplies, traders said.

The official selling price (OSP) for flagship Arab Light crude in May could rise by $5 a barrel on average to reach nearly $10 a barrel above Oman/Dubai quotes, the grade's highest premium ever, a Reuters survey of seven refining sources showed.

Middle East spot crude premiums for May-loading cargoes hit records this month after buyers shunned oil from Russia, the world's top exporter of crude and oil products combined, for fear of European and US sanctions over the Ukraine conflict.

Refiners' margins for middle distillates also hit all-time highs this month, as Russia cut refining output and diesel exports.

However, spot premiums have halved from peaks over the last week in muted trade, prompting some buyers to call for smaller hikes in Saudi oil prices.

"Physical supply-demand balance is not that strong," said one respondent, adding that spot premiums for grades such as Murban had fallen dramatically.

Saudi Aramco may also reduce price hikes for Saudi medium and heavy grades as Russian Urals crude is still heading into India, another