Saudi Arabia may raise the price of crude oil to a record level

As international oil prices continue to rise, Saudi Arabia, the largest oil exporter, could raise the pricing of its major crude grades to record levels
.

Saudi Aramco could raise the official Asian selling price of its key Arab Light crude for loading in May by $5 a barrel, according to a
median estimate of five refiners and traders.
That would put the overall spread $9.
95 above the Oman-Dubai benchmark, which would be the largest since Bloomberg began compiling the data in 2000
.

Oil prices surged to their highest level since 2008 in the quarter, as the Russia-Ukraine war boosted oil prices
already rising on expanding global demand and rapidly falling inventories.
While lockdowns in response to the pandemic in some Asian countries continue, Saudi Arabia is likely to raise the price of key crude, which will set the tone
for other grades.

The official selling price (or OSP) determines how much
a buyer with a long-term contract pays for the goods.
The difference in selling prices can indicate the strength of potential demand
.

The Russia-Ukraine conflict has weakened demand for Russian oil in the West, as well as in Japan and South Korea, thereby increasing the market share
of Middle Eastern suppliers such as Saudi Arabia in the region.
Meanwhile, some buyers in Asia, especially India, have begun to accept more oil
from Russia.

As Aramco prepares to announce its official selling price, Saudi Arabia will join other producers, including Russia, in OPEC+ meetings this week to develop production policies
for the alliance.
Ahead of Thursday's meeting, members had already said they still didn't see the need to adjust supply plans
.

Saudi Aramco did not respond to an email
seeking comment.
The state-run company usually publishes official prices
on the first five days of the month.

Traders in Asia are keeping a close eye on the outbreak in China, which could pose a greater risk
to oil demand.
Some advisers, including Energy Aspects Ltd, have cut their estimates
of China's crude consumption.

Compared to other global indicators such as Brent and WTI, Dubai crude has a relatively large
discount in Asian crude oil benchmarks.
It also makes buyers more willing to pay for Persian Gulf oil linked to Dubai crude
, according to traders.