The stronger OSPs follow the recent rally in crude futures prices, including the Dubai sour complex, which have jumped following Russia’s invasion of Ukraine and worries of supply constraints.
The April OSP announcement follows the the March 2 meeting of OPEC and its allies when the group agreed to increase crude production as planned by 400,000 b/d in April, despite the dramatic spike in oil prices well over $100/b.
The biggest price increase for April was for Super Light, Extra Light, Light, Medium and Heavy grades to Asia, as healthy refining margins have increased demand for crudes, and tighter supply and rising freight economics of arbitrage cargoes from the West has some buyers looking to Middle East oil.
For Asia-bound crude, Aramco increased Arab Medium by $2.15/b to a $4.90/b premium over the Oman/Dubai average and Arab Heavy rose $2.15/b to plus $3.55/b. Super Light into Asia was raised by $2.70/b to a $8.15/b premium, while Extra Light was increased by $2.30/b to a $5.90/b premium. Light was raised $2.15/b to a $4.95/b premium.
For Northwest Europe-bound crude, Aramco lifted its Extra Light grade the most by $2.10/b to a $4.30/b premium to ICE Brent and its Light grade was up $1.70/b to plus $1.60/b. Arab Medium was increased by $1.40/b to a 50 cents/b premium, while Arab Heavy rose $1.20/b to a $1.40/b discount to ICE Brent.
Mediterranean bound crudes also saw increases. Arab Light gained $1.90/b to a $1.90 premium to ICE Brent. Arab Medium also was up $1.90 on the month to reach an 80 cents/b premium to the benchmark. The April OSPs for Extra Light increased by $1.70/b to a $4/b premium and Arab Heavy gained $2/b to a 60 cents/b discount to ICE Brent.
For US-bound crudes, Aramco increased all grades by $1/b from March. The April Extra Light OSP was set at a $4.80/b premium over ASCI. Arab Light, Medium and Heavy grades were up as well at premiums of $3.45/b, $2.75/b and $2.30/b, respectively.