RIYADH: Saudi Aramco has raised its official selling price for its flagship Arab Light crude oil destined for Asia in August, the company confirmed in an official statement on Sunday.
The state-owned company raised the price of its benchmark oil to $2.20 per barrel above the average of Oman and Dubai crude prices.
Saudi Aramco prices its crude oil across five density-based grades: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).
The company’s monthly pricing decisions impact the cost of around 9 million barrels per day of crude exported to Asia and serve as a pricing benchmark for other major regional producers, including Iran, Kuwait, and Iraq.
Aramco also raised August prices for Arab Extra Light by $1.30 per barrel and Arab Heavy by $0.90. The price hikes follow a decision by eight OPEC+ members to increase production by 548,000 barrels per day in August, further accelerating output growth.
In the North American market, Aramco set the August OSP for Arab Light at $3.90 per barrel above the Argus Sour Crude Index.
Aramco determines its OSPs based on market feedback from refiners and an evaluation of crude oil value changes over the past month, taking into account yields and product prices.
