Bloomberg News

Saudi Aramco Cuts July Prices for Light Crudes to U.S., Asia

June 05, 2011

(Updates with price table after fourth paragraph.)

June 5 (Bloomberg) -- Saudi Aramco, the world’s largest oil exporter, cut official selling prices for light crude grades for July shipments to the U.S. and Asia. The company raised prices on the rest of its grades for July.

Saudi Arabia’s state-owned producer reduced the formula price for its Arab Extra Light crude to Asia by $1.40 a barrel, trimming it to $3.45 above the average of Oman and Dubai grades, the two Gulf benchmarks used by traders in Asia. It pared the price of Arab Super Light to Asia the most, by $2.90 a barrel, to a premium of $4.85 a barrel over the benchmark, Aramco said in an e-mailed statement today.

Aramco set the price for July loadings of Extra Light crude to U.S. buyers at a $2.90 premium to the Argus Sour Crude Index, or 55 cents less than June cargoes, the company said.

Persian Gulf oil producers such as Saudi Arabia sell most of their crude under long-term contracts to refiners. Most of the region’s state oil companies price their oil at a premium or discount to a benchmark.

The following table gives price differentials to benchmarks for the four regions in which Aramco sells, as well as month-on- month changes and the degrees of gravity as defined by the American Petroleum Institute. Prices are in U.S. dollars a barrel.

Prices for Northwest European and Mediterranean customers are expressed as a differential against the Brent weighted average posted by Intercontinental Exchange, free on board Ras Tanura.

--Editors: Bruce Stanley, Mark McCord

To contact the reporters on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net.

To contact the editors responsible for this story: Stephen Voss on sev@bloomberg.net.


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