Brent hits new 2015 high as Saudi prices unveiled

Brent hits new 2015 high as Saudi prices unveiled

2 hours ago April 5, 2015

Financial Times

International oil benchmark North Sea Brent hit another fresh high for the year on Tuesday, rising towards $68 a barrel as Saudi Arabia announced its official selling prices (OSPs) for next month.

Brent rose as high as $67.78 a barrel, up more than $1 on the day and extending its rally since January to almost 50 per cent, writes Deputy Commodities Editor, David Sheppard.

The move came as Saudi Arabia, the world’s largest oil exporter, released its closely-watched official selling prices (OSPs), hiking them to Europe and North America, while holding them steady to Asia.

• Saudi Aramco kept its June OSP for Arab Light crude at minus 60 cents a barrel to the Oman/Dubai average.
• The company raised its Arab Light OSP to Northwest Europe to minus $2.65 a barrel versus Brent Weighted Average (BWAVE), up $1.30 a barrel on May.
• Its Arab light OSP to the US was raised 20 cents a barrel to $1.55 a barrel above the Argus Sour Crude Index (ASCI).

Higher OSPs are sometimes interpreted by the market as a sign of stronger demand and that Saudi is comfortable about placing its barrels with refineries, though Riyadh maintains they are primarily adjusted based on monthly formulas.

At the end of last year Saudi Arabia and other Middle Eastern OPEC members slashed OSPs amid weak demand and as countries struggled to maintain their share of the market.