Saudi Aramco raises oil prices for Asia

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Singapore, July 6: Saudi Aramco, the world’s biggest oil company by output, raised prices for three crude grades it will export to Asia in August as refiners’ profit from making diesel and kerosene increases.

Saudi Arabia’s state oil company increased prices of Super Light, Extra Light and Arab Light varieties relative to the average of Persian Gulf crude oil benchmarks Oman and Dubai, said refinery officials, who received notices from the company.

The refining profit, or margin, to turn crude oil into middle distillate fuels, or diesel and kerosene, has surged as plant maintenance and unscheduled shutdowns in Asia cut production. The refining margin in Singapore, Asia’s biggest oil trading center, has almost doubled in the second quarter from the previous three-month period, according to AG Edwards & Sons Inc, a unit of the largest full-service US brokerage based outside New York.

‘‘Prices of rival light grades from Africa have gone up and there’s demand for similar varieties from other regions,’’ said Akira Kamiyama, a trader at Mitsui & Co in Tokyo. ‘‘Margins for middle distillates are very strong right now.’’

Saudi Aramco raised differentials over its benchmark price for Super Light crude oil by 40 cents to $7.25 a barrel, Extra Light by 45 cents to $3.65 a barrel and Arab Light by 15 cents to 35 cents a barrel. These so-called light grades yield more gasoline, diesel and kerosene after processing.

Saudi Aramco kept prices of its Arab Medium and Arab Heavy grades unchanged at minus $2.85 a barrel and minus $5.95 a barrel.

These varieties yield more fuel oil, a product of which the crack, or price spread to Dubai crude, has declined.

The crack fell to minus $16.17 a barrel on July 3, the lowest ever, according to Bloomberg calculations.