The world’s top crude oil exporter, Saudi Arabia, bets on robust demand in Asia as it raised the prices of its oil loading in September for a second month in a row.
The flagship Saudi grade Arab Light will sell in Asia in September at a premium of $3.20 per barrel above the Oman/Dubai average, the Middle East benchmark, off which shipments to Asia are priced.
The hike is $1.00 a barrel above the August price, as well as the second consecutive rise in the price of Arab Light loading for Asia.
Last month, Saudi oil giant Aramco raised its August-loading Arab Light OSP to Asia by $0.70, lifting the premium to $2.20, which represented the highest level since March. That decision followed steady margins across Asian refining hubs and tightening Russian competition, particularly on the Pacific side.
The hike in September was also widely expected by the market, which forecast a $0.90-$1.05 per barrel rise for the Arab Light grade for Asian shipments.
Saudi Arabia also lifted the official selling prices (OSPs) for the other grades, Arab Extra Light, Arab Medium, and Arab Heavy, by between $0.70 and $1.20 per barrel above benchmarks.
The second consecutive increase in prices suggests that Saudi Arabia expect continued robust demand in its key exporting region, Asia, in the coming weeks.
A potential reduction of Russian supply to India, due to the new tariffs, could also boost the demand for Saudi and other Middle Eastern crude shipments to Asia next month and going forward.
Earlier this week, Saudi Aramco expressed a very bullish view on demand in the second half of the year, with president and CEO Amin Nasser saying “Market fundamentals remain strong and we anticipate oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half.”
By Tsvetana Paraskova for Oilprice.com
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