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UPDATE 2-Saudi Aramco cuts May Arab Light crude price to Asia
April 5, 2017 / 12:25 PM / in 8 months

UPDATE 2-Saudi Aramco cuts May Arab Light crude price to Asia

 (Adds details on U.S. inventories)
    DUBAI, April 5 (Reuters) - Saudi Arabia cut the May official
selling prices (OSP) for its light crude oil for Asian
customers, in line with expectations, but raised the price for
oil sales to the United States where crude stockpiles are at a
record high.
    State oil giant Saudi Aramco cut the price of its Arab Light
by 30 cents per barrel versus April to a discount of $0.45 a
barrel to the Oman/Dubai average, it said on Wednesday.
    A Reuters survey of four refiners in Asia expected the
producer to cut the OSP for flagship Arab Light crude by 10-40
cents a barrel in May from a month ago.             
    Aramco lowered the price of Arab Light to Northwest Europe
by $0.45 a barrel to a discount of $4.35 per barrel to the Brent
Weighted Average (BWAVE).
    But it raised the price of Arab Light to the United States
by $0.30 a barrel to a premium of $0.50 per barrel to the Argus
Sour Crude Index (ASCI).
    The move comes after a buildup in U.S. crude inventories in
recent weeks that has weighed on the market. 
    Total U.S. crude inventories were at a record of nearly 534
million barrels, the Energy Information Administration (EIA)
said on March 29.             
    Aramco plans to change the way it prices oil for Europe from
July, industry sources told Reuters on Tuesday, in an effort to
increase the appeal of Saudi crude by making it easier for
customers to hedge.             
    
    The tables below show the full FOB prices for May in U.S.
dollars.
    Saudi term crude supplies to the United States are priced as
a differential to the Argus Sour Crude Index (ASCI).

United States

             MAY       APRIL         CHANGE
             
EXTRA LIGHT  +2.70     +2.10         +0.60   
 
LIGHT        +0.50     +0.20         +0.30   

MEDIUM       -0.70     -1.00         +0.30   

HEAVY        -2.00     -2.30         +0.30   

Prices at Ras Tanura destined for Northwest Europe are set
against Brent crude weighted average
(BWAVE):

NW EUROPE

             MAY       APRIL         CHANGE

EXTRA LIGHT  -2.85     -2.15         -0.70   

LIGHT        -4.35     -3.90         -0.45   

MEDIUM       -5.40     -5.00         -0.40   

HEAVY        -7.05     -6.55         -0.50   

Saudi term crude supplies to Asia are priced as a differential
to the Oman/Dubai average:

ASIA

             MAY       APRIL         CHANGE

SUPER LIGHT  +3.75    +3.95        -0.20  

EXTRA LIGHT  +0.60    +0.95        -0.35 

LIGHT        -0.45    -0.15        -0.30  

MEDIUM       -0.85    -0.85         0.00  

HEAVY        -2.60    -2.60         0.00  

Prices at Ras Tanura for Saudi oil destined for the
Mediterranean are set against the BWAVE:

MEDITERRANEAN

             MAY       APRIL         CHANGE

EXTRA LIGHT  -2.75     -1.70         -1.05   

LIGHT        -4.35     -3.65         -0.70   

MEDIUM       -5.15     -4.50         -0.65   

HEAVY        -6.25     -5.75         -0.50   


 (Reporting by Reem Shamseddine and Roslan Khasawneh; editing by
Rania El Gamal and Susan Fenton)
  

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