Saudi Arabia cuts oil costs to Asia to four-month low

SINGAPORE (Reuters) – Saudi Arabia, the world’s prime oil exporter, on Sunday lowered crude oil costs for Asian patrons in Might to their lowest in 4 months, after a shock resolution by the OPEC+ oil group to extend provide on Thursday.

State oil firm Saudi Aramco reduce the Might official promoting value (OSP) for flagship Arab Gentle crude by $2.30 to $1.20 a barrel above the common of Oman and Dubai costs, a pricing doc from the producer confirmed.

The corporate additionally lowered April costs for different grades it sells to Asia by $2.30 per barrel.

That is the second consecutive month Aramco has lowered its costs. Eight OPEC+ nations unexpectedly agreed on Thursday to advance their plan to section out oil output cuts by rising output by 411,000 barrels per day in Might, a choice that prompted oil costs to increase earlier sharp losses.

Previous to the information, Arab Gentle value for Asia had been anticipated to fall by $1.80 to $2 in a Reuters survey, monitoring the steep declines in benchmark costs in March.

Spot premium of Dubai averaged at $1.38 per barrel in March, down from $3.33 per barrel, the common in February following extra Russian provide returning to Asia since March.

Saudi time period crude provides to

Asia are priced as a

differential to the Oman/Dubai

common:

Might APRIL CHANGE

SUPER 1.75 4.05 -2.30

LIGHT

EXTRA 1.00 3.30 -2.30

LIGHT

LIGHT 1.20 3.50 -2.30

MEDIUM 0.65 2.95 -2.30

HEAVY -0.50 1.80 -2.30

(Reporting by Siyi Liu in Singapore and Ahmed Tolba in Cairo; Modifying by Elaine Hardcastle)