Saudi Arabia Raises March Crude Oil Price for All Buyers

Saudi Arabia, the world’s largest crude exporter, raised pricing for March sales to buyers from the US to Asia as output cuts by OPEC and other producers shore up oil prices.

State-owned Saudi Arabian Oil Co., known as Saudi Aramco, boosted its official pricing for Arab Light crude to Asia by 30 cents, 15 cents a barrel more than the regional benchmark, it said in a statement, Bloomberg reported.

The company had been expected to increase pricing for the grade to a premium of 10 cents more than the Oman-Dubai benchmark, according to the median estimate in a Bloomberg survey of six refiners and traders. Aramco raised pricing in Northwest Europe to the highest since 2015, except for the Heavy grade which was boosted to the highest since 2014. Pricing was increased in Asia to the highest this year. Buyers in the Mediterranean region will also see higher pricing for all grades in March.

Oil jumped 52% last year, its first annual gain in four years, as the Organization of Petroleum Exporting Countries took steps to limit production to eliminate a global supply glut. 

The group and 11 other producers, including Russia, have been largely meeting their collective pledge to cut output by as much as 1.8 million barrels a day, Saudi Arabia Energy Minister Khalid al-Falih said in Vienna on Jan. 22. The cuts started last month. Middle Eastern producers compete with cargoes from Latin America, North Africa and Russia for buyers in Asia.