Market Eye: Saudi Price Differentials Rise Despite Weak Asian Margins

摘要

Saudi formula prices for July-loading crude oil exports to the Asia-Pacific region have risen for three key crude grades despite weak refining margins in Asia, where demand is expected to receive a lift from refineries coming back from turnarounds. The three grades--Arab Light, Arab Medium and Arab Heavy--are up by 60￠-$1.10 per barrel compared to the previous month (IOD May6'14). The relatively high formula prices for Arab Medium and Arab Heavy could push some Asian refineries to cut runs to cope with weak margins, several market sources say. But for Arab Heavy, its firm term differential could be receiving some support from higher demand this summer.