Saudi Arabia may keep February Arab Light crude to Asia near three-year high

2 Jan 2018   Saudi Arabia

Top oil exporter Saudi Arabia is expected to keep the February price for Arab Light crude steady, close to the highest in more than three years, while lowering prices for medium and heavy grades, a survey by Reuters showed on Tuesday. Robust spot crude demand and stronger margins for middle distillates will underpin Saudi crude prices, but the producer was unlikely to raise prices further as Asia’s “demand is expected to fall because of spring maintenance”, one of the four respondents said in the survey. The official selling price (OSP) for Saudi’s flagship Arab Light crude could pause in February, after rising in January for the fifth straight month to its highest since September 2014, the survey showed. Backwardation between first and third month cash Dubai third-monthvely unchanged in December from the previous month, the respondents said. In a backwardated market, prompt prices are higher […]

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