Market Eye: Saudi Prices Anticipate Asia Demand Bump

摘要

Saudi June formula prices for term crude exports to Asia-Pacific once again diverged, with the lighter crudes losing ground to heavier grades. Reactions to the price movements continued to be mixed, with some market sources feeling Arab Light and Arab Medium term differentials were higher than expected (IOD Apr.5'13). Ultimately, the anticipated increase in crude demand from most Asian refineries returning from turnarounds could prove to be a more significant influence on the spot Mideast market. But the underlying benchmark heavy, sour Dubai price is rising due to high bids in the trading window and this could upend the market if it continues, market sources said.