Saudi Arabia Will Make Crude Oil Expensive In May

Saudi Arabia will make crude oil expensive in May! Asian countries may have to pay a higher price.

Saudi Arabia is expected to raise its oil prices for Asia. Traders said top oil exporter Saudi Arabia may push crude oil prices for Asia to new highs in May.

Tracking strong gains in Middle East benchmarks amid disrupted global supplies following Western sanctions on Russia.

Price will be higher than Oman/Dubai.

According to the media, its survey showed that the official selling price (OSP) of the leading Arab light crude could rise by an average of $5 a barrel in May to nearly $10 a barrel higher than Oman/Dubai, which is the highest in the world.

The grade has the highest premium ever. Middle East spot crude premiums for cargo loaded in May broke a record this month after buyers stopped taking oil from Russia,

The world’s top exporter of crude and oil products combined, fearing European and US sanctions over the Ukraine conflict.

Refiner margins for medium distillates also hit an all-time high this month, driven by cuts in Russia’s refining output and diesel exports.

However, spot premiums have halved from last week’s peak in sluggish trading, prompting some buyers to call for a smaller hike in Saudi oil prices.

“The physical supply-demand balance is not that strong,” said one of the respondents to the survey. He said the spot premium of grades like Murban had dropped dramatically.

Another said Saudi Aramco may reduce the price hike for Saudi medium and heavy grades as Russian Ural crude is still headed to India.

Indian state refiners and Naira Energy have bought several million barrels of Ural crude this month at lower prices.