KSA Hikes October Crude Prices For Asian Customers, Lowers Them For US - Arab Extra Light Up $4.25

[hatrack]

Top oil exporter Saudi Arabia has raised October official selling prices (OSPs) for its crude for Asian buyers and its lightest grades to Europe, but mostly lowered prices to the US.

State-owned Saudi Aramco set its flagship Arab Light crude to Asian buyers at its highest premium in more than four years, with the price hike for lighter grades beating expectations and likely to support demand for rival crudes traded on the spot market.

Aramco raised differentials to Asia for October by between 25 and 75 cents a barrel from September. Arab Light to Asia was set at a premium of $1.35 a barrel to Oman/Dubai, the highest since at least the end of 2002, Reuters data shows.

EDIT

Heavier grades drew support from a strong fuel oil crack. Arab Medium and Arab Heavy are heavy sour, fuel oil-rich grades, and had been expected to strengthen on the back of a $1.28 rise in the fuel oil crack in August. The front-month fuel oil crack rose to an average of $9.68 a barrel below Dubai swaps in August, against a $10.96 discount in July, Reuters data shows, as supplies in Asia remained limited.

EDIT

http://www.arabianbusiness.com/499318-saudi-hikes-october-crude-prices

[kestrel91316]

1. Gotta keep the addict hooked. Price gets too high, he just might kick the habit.

[Nihil]

2. Appropriate words indeed ...

... considering that the OP article talks about "... a strong fuel oil crack" ...
:-)