Saudi raises crude selling price for February

Saudi Arabia has hiked the official selling prices of its heavier crude oil grades for February term supply to Asia, possibly setting the stage for further term supply cuts.

Higher prices of heavier grades, which comprise the bulk of exports to Asia, in theory would help Saudi Arabia offset any losses from reduced sales.

Saudi Arabia will announce February term supply allocations shortly, and traders expect the kingdom to deepen term supply reductions in line with the Organization of Petroleum Exporting Countries’ decision to further tighten the market.

State-owned Saudi Arabian Oil Co., or Aramco, raised the February OSP of Arabian Medium by 30 cents a barrel to $2.75 a barrel below the average of Oman and Dubai assessments, term lifters said Thursday.

Bahrain Tribune