Saudi Arabia could raise Asia oil prices in October: report

Saudi Arabia is likely to increase October prices for Arab Light crude sold to Asian customers to its highest level in at least six months, due to robust demand across the region, Reuters reported on Wednesday, citing unnamed trade sources.

The October official selling price (OSP) for flagship Arab Light could rise by $0.2 to $0.5 a barrel, tracking strength in Middle East benchmark Dubai crude and Asian refining margins, according to the news agency’s survey of five refiners and traders.

Arab Extra Light's OSP could also rise in October on higher naphtha margins.

Weaker fuel oil margins, however, could curb any price hike for Arab Heavy, respondents said, widening the light-heavy crude price difference for the month.

Saudi crude OSPs are usually released around the fifth day of each month, and influence Iranian, Kuwaiti and Iraqi prices, affecting over 12 million barrels per day (bpd) of Asia-bound crude.