Saudis set record oil premium as Middle East conflict rattles markets

Saudi Arabia has raised the official selling price of its flagship crude grade to Asia to a record high, highlighting deepening strains in global energy markets as the war involving Iran continues to throttle supplies through the Strait of Hormuz.

State-owned Saudi Aramco said on April 6 it would set the May official selling price (OSP) for Arab Light crude at a premium of $19.50 a barrel above the regional benchmark — the highest on record, Caliber.Az reports via foreign media.

That was below traders’ and refiners’ earlier expectations of a roughly $40 premium.

The move reflects mounting concerns over supply disruptions after Iran’s near closure of the Strait of Hormuz, a critical chokepoint for about a fifth of the world’s seaborne oil exports, as a U.S.-Israeli military campaign against Tehran shows no signs of abating.

Brent crude futures have jumped more than 50% year-to-date, with prices repeatedly breaching four-year highs on fears that prolonged disruptions will tighten an already fragile global oil balance.

Fuel prices across the United States, Europe, and Asia have also climbed sharply.

By Aghakazim Guliyev