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Sun 5 Sep 2010 05:27 PM

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Saudi Arabia raises October oil prices on all grades

Saudi Aramco raises the formula price of its Arab Super Light Crude to Asia the most.

Saudi Arabia raises October oil prices on all grades
OIL PRICES: Saudi Aramco raised the formula price of its Arab Super Light Crude to Asia the most. (Getty Images)

Saudi Aramco, the world’s largest state-owned oil company, raised official selling prices for all crude grades for customers in Asia, the U.S., Northwest Europe and the Mediterranean Sea for October.

The company raised the formula price of its Arab Super Light Crude to Asia the most, increasing it 75 cents a barrel to $1 above the benchmark Dubai price assessment published by Platts, according to a person familiar with the rates.

Among shipments to the U.S., Aramco increased Extra Light and Arab Heavy crudes by 10 cents a barrel each to a $1.20 a barrel more than the Argus Sour Crude Index and to a $3.30 a barrel discount below the benchmark for the more dense grade.

Aramco has supplied full volumes to refiners in Asia since December. It lowered prices on most crude grades to Asia for February, March, April, July and September, after raising prices on light grades to the U.S. and Asia for May and June. Aramco cut prices for light grades to the U.S. for September.

Saudi Arabia was the fourth-biggest exporter of crude to the U.S. last year, dropping back from second place in 2008, according to data from the U.S. Energy Information Administration. Canada, Mexico and Venezuela all shipped more crude to the U.S., the data show.

Crude oil for October delivery slipped 9.4 percent on the New York Mercantile Exchange in August to close the month at $71.92 a barrel. Saudi Arabia’s Oil Minister Ali al-Naimi said March 30 oil prices in a range of $70 to $80 are “as close to perfect as possible” and he hopes they remain in that range. (Bloomberg)

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