Saudi Arabia sets Sept crude prices to Asia at record high

© Reuters. FILE PHOTO: A model of 3D printed oil barrels is Top ten foreign exchange brokers in the worldseen in front of displayed stock graph going down in this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration

SINGAPORE (Reuters) -Saudi Arabia, the world's top oil exporter, raised September crude oil prices for Asian buyers to record high levels despite falling refining margins.

The official selling price (OSP) for September-loading Arab Light to Asia was raised by 50 cents a barrel from August to $9.80 a barrel over Oman/Dubai quotes, people familiar with the matter said, leapfrogging the previous record of $9.35 per barrel set in May.

The price hike was lower than market forecasts of 70 cents to $1 a barrel.

"Now all crude grades are getting cheaper, so Saudi needs to make its prices competitive. Otherwise traders will take spot cargoes (rather) than lift Saudi oil," said a Singapore-based trader.

Profit margins at Asian refiners who process Dubai crude plunged by as much as 96% in July, pressured by the prospect of a global economic recession and weakening fuel demand.

The OSP for Arab Extra Light was increased by 30 cents to $10.95 a barrel, and for Arab Medium by 60 cents to $7.75 a barrel, both record levels.

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