SINGAPORE- Top oil exporter Saudi Arabia may raise prices for crude it sells to Asia for the first time in three months in September, tracking a rise in Middle East benchmark Dubai, traders said on Thursday.
The official selling price (OSP) for flagship Arab Light crude to be loaded in September for Asia is expected to rise by 50 to 80 cents a barrel from the previous month, four refining sources told Reuters in a survey.
The price spread between the first and third month cash Dubai widened in backwardation by about 80 cents a barrel last month, Reuters data showed, as spot demand for Middle East crude rose after supplies from the US and Europe became more expensive for Asian buyers.
Energy major PetroChina snapped up 13 cargoes on Platts window last month, traders said, tightening medium-sour crude supply.
Still, slow recovery in Asia’s refining margins and weak refined products demand in China, the world’s top crude importer, may limit the room for Saudi price hikes, some of the respondents said.
Complex refinery margins in Singapore averaged at $3.69 a barrel in June, up from $2.94 in May but remained lower than April, LSEG data showed.
