(B.S)
Top oil exporter Saudi Arabia may sharply hike prices of crude for Asia in April, trade sources said on Wednesday, with differentials for most grades hitting all-time highs as global supplies tighten over financing and shipping issues from sanctions on Russia. The official selling price (OSP) for Saudi’s flagship Arab Light crude may rise to a record of $4.50 a barrel, up $1.70, three of five refining sources told Reuters in a survey. Another two respondents said the OSP could rise by $1.50 and $2.20 a barrel.
The sharp price hikes are tracking strong gains in Middle East benchmark Dubai last month which reached record levels as buyers faced limited options amid tight supplies. “It’s very hard to forecast especially with so much uncertainty ahead,” one respondent said. Light crude grades continued to be underpinned by robust margins for middle distillates although some respondents expect smaller price hikes for heavier grades. Even then, the OSPs for Arab Medium and Arab Heavy crude may still hit record levels in April, the survey showed.
