Saudi Aramco Widens Heavy Crude Discounts for Asia

Saudi Aramco, the world’s largest state oil company, increased the discount on prices of heavy crudes it will export to Asia in June to a record after the refining profit for fuel oil declined.

Dhahran, Saudi Arabia-based Aramco widened discounts for its Arab Heavy grade by 45 cents to minus $7.45 a barrel and Arab Medium was reduced by 20 cents to minus $7.45 a barrel, the company said in a faxed statement. Both crudes after processing yield more fuel oil, used in power plants and ships.
Diesel and kerosene prices in Asia have climbed to records in the past month because of rising demand from China, India and Indonesia as refiners shut for routine maintenance of plants. As consumption rose, refining margins, or profits, also gained prompting higher demand for crude grades that yield more diesel and kerosene, or middle-distillates.

Bloomberg