Saudi Aramco, the world's largest state-owned oil company, raised the official selling prices for shipments.
Saudi Aramco, the world's largest state-owned oil company, raised the official selling prices for shipments of so-called heavy crude grades for February as demand climbed. The company increased the prices for all of its grades to the U.S., according to a statement faxed from its headquarters in Dhahran. Aramco increased the price of its Arab Medium and Arab Heavy types to Asia and Europe. The price for its so-called lighter grades was left unchanged or reduced for shipments to Europe and Asia.
Demand for Saudi Arabia's heavy crude has risen as the Organization of Petroleum Exporting Countries, which produces more heavy crude than light oil, enacts record production cuts in an attempt to reverse last year's slump in prices.
The cost of Saudi's Heavy crude exports to the U.S. increased the most, climbing $4.45 to a discount of $5.30 a barrel to the West Texas Intermediate benchmark. Medium crude exports increased $3.55 a barrel to a discount of $4.20.
Light crude prices to the U.S. rose $2.80 to a discount of $2 while Extra Light exports increased the least, rising $1.50 to a discount of $1.60.