Sources: Saudi Arabia is expected to raise the official selling price of Arab light crude oil in May

Saudi Arabia, the largest oil exporter, is likely to raise the official selling price (OSP) of Arab light crude in May after the Middle East benchmark crude oil strengthened last month, according to sources. A Reuters poll of five refining sources showed that the OSP of Arab Light crude could be 20-30 cents a barrel higher in May than in April. Saudi Arabia’s medium and heavy grade crude prices in May will be supported by the expected tightening of medium and heavy grade supplies due to oil field maintenance in Saudi Arabia, OPEC+ production cuts and increased domestic consumption in several Middle Eastern producers, the sources said. The official selling price of Saudi crude is usually released around the 5th of each month, setting trends for Iranian, Kuwaiti and Iraqi crude prices, affecting about 9 million barrels per day of crude destined for Asia. The chart below shows the Reuters poll’s pricing expectations for Saudi Arabia’s various types of oil products in May.