How does Aramco determine the price of a barrel of Saudi oil 2022?  (Report) - Energy

Aramco sets the price of a barrel of Saudi oil 2022 per month for the Asian, European and American markets, a trend that is contrary to other Gulf countries such as Oman and Kuwait, which issue price bulletins daily.

Aramco sets the official prices for selling crude oil to Asia, Europe and the United States, based on several factors, most notably the movement of international oil prices, in addition to the movement of sales, supply and demand, in addition to other factors related to the volume of production, reserves and consumption.

During the first months of this year, Aramco offers varied on the price of a barrel of Saudi oil 2022, as the price rose in some bulletins, and the company offered discounts in other bulletins, in response to the global movement of oil and demand for it.

direct oil prices

On a monthly basis, Aramco announces the price of a barrel of Saudi oil 2022 for foreign markets, in a separate bulletin issued on the 5th of every month.

Saudi oil exports

Last December, Aramco announced the official selling prices for Arab Light crude for January 2022 shipments to its customers in Asia, Europe and America, as it raised the selling price to Asia by $3.30 per barrel above the Oman/Dubai average, an estimated increase of $0.60 over December.

The company sold its oil to Northwest Europe, after setting selling prices at $1.30 a barrel for Brent crude on the Intercontinental Exchange, and to the United States at $2.15 above the Argos benchmark.

The following month, Aramco announced the Arab Light OSP for February shipments, setting it to Asia at $2.20 above the Oman/Dubai average for February, about $1.10 a barrel lower than the January premium.

The new price decision for February came after the decision of the OPEC + alliance to continue to increase production by about 400,000 barrels per month, during the same month.

Russia’s invasion of Ukraine

The Russian military moves in Ukraine – on February 24 – confused global oil prices, and affected the price of a barrel of Saudi oil 2022, as Saudi Aramco raised crude prices for Asian markets for the month of March, by about $ 0.6, compared to February, as it reached to $2.8, the highest price since March 2020.

This tremor continued in the following April, as the Saudi company set the official selling prices for Arab Light crude for shipments this month to its customers in Asia at about $4.95 a barrel above the Oman/Dubai average for the month of April, up $2.15 from March.

Aramco also raised the selling price of crude for Northwest Europe at $1.60 a barrel below the price of Brent crude on the Intercontinental Exchange, up by $1.70, and the selling price for the United States at $3.45 above the Argos Index, a dollar more than the March shipments.

The price of a barrel of Saudi oil 2022 live today

The price of a barrel of Saudi oil 2022, which Aramco sold to its customers in Asia, Europe and America for the month of May, witnessed a record rise, as the company sold its Arab Light crude to Asia, rising $ 9.35 a barrel above the Oman/Dubai average for the month of May, up by $ 4.4 from April /April.

The price of a barrel of Saudi oil 2022
Aramco oil pipelines and tanks – archive

The rise is the highest after oil prices rose to their highest levels in 14 years, and the sale price of Arab Light crude shipments for the month of May to Europe was set at $3, at $4.60 a barrel above Brent crude.

Aramco raised the official selling price to the United States by about $2.20, at a premium of $5.56 a barrel over the Argos benchmark.

Aramco prices

After months of continuous rise in the price of a barrel of Saudi oil 2022 to Asia and Europe, Aramco decided to reduce the official selling prices of its standard crudes to Asia, Europe and America, in June, by 50% compared to last month.

The Saudi decision coincided with a new and more fierce spread of the Corona virus in a number of countries in the Asian continent, especially China, which led to a decline in demand for oil during the recent period.

Aramco lowered the official selling price for Arab Light crude shipments to Asia, at $4.40 a barrel above the Oman/Dubai average, compared to $9.35 a barrel above the Oman/Dubai average in May, and $4.4 in April.

The official selling prices for Arab Light crude shipments to Northwest Europe also declined, at $2.10 a barrel, above Brent crude on the Intercontinental Exchange, compared to $4.60 in May, while the Saudi company kept its selling price to the United States, at $5.65 a barrel. Above the Argos indicator.

The price of a barrel of oil today is live

In the context of talking about the price of a barrel of Saudi oil 2022, crude prices witnessed volatility today, Monday, May 16, after declining in the morning trading by more than 1%, they rose again in the middle of the day.

By 04:30 PM GMT (07:30 PM GMT), Brent crude futures for July delivery rose 1.40% to $112.95 a barrel.

West Texas Intermediate crude futures for June delivery rose 2.5% to $112.80 a barrel.

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