Top oil exporter Saudi Arabia is expected to raise prices for all crude grades it sells to Asia in July for a third straight month after Middle East crude benchmarks jumped, trade sources told Reuters on Thursday.
The producer is likely to increase the official selling price (OSP) for flagship Arab Light crude by up to $1 a barrel to the highest since January 2014, a Reuters survey of four sources at refineries showed.
U.S. sanctions on Venezuela and Iran and a Russian oil crisis have tightened sour crude supplies in Asia, pushing spot Middle East and Russian crude premiums to multi-year highs.
The extent of Saudi Arabian price hikes depends on whether the country takes into account weaker margins for naphtha and fuel oil, the sources said, as those would lead to smaller price gains for grades such as Arab Extra Light and Arab Heavy that have a higher yield of such products