Saudi Arabia raises crude official price to Asia, confirms attacks on export ports and facilities

Anil Panchal FXStreet

Early Monday morning in Asia, Reuters came out with Saudi Arabian news on April crude oil official prices for Asia as well as attacks on oil port in Ras Tanura and missile attack near Saudi Aramco’s residential area in Dhahran.

In the first news, Riyadh conveyed the official selling price (OSP) for its Arab Light crude to Asia, from state oil producer Aramco. The details suggest the addition of $1.40 per barrel versus the Oman/Dubai average, up to $0.40 from March.

As per the additional data mentioned in the statement, quoted by Reuters, “Saudi Arabia set its Arab Light OSP to Northwest Europe at minus $2.20 per barrel against ICE Brent compared with minus $0.50 in March. The OSP to the United States was set at plus $0.95 a barrel over Argus Sour Crude Index (ASCI) for April, $0.10 above March’s premium.”

On a different page, Saudi Arabia’s Energy Ministry Spokesman confirmed, per Reuters, via state news agency SPA that a drone hit a petroleum tank farm at Ras Tanura port, one of the world’s largest oil shipping ports, and shrapnel from a ballistic missile fell near Saudi Aramco’s residential area in Dhahran. The official also mentioned that neither attack resulted in any injury or loss of life or property.

Market implications

While crossing $66.00 on Friday, WTI oil already probed April 2019 top. That said, oil trading is yet to kick-start the week and may aim to cross the 23-month peak near $66.60 backed by the news.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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