October 5, 2016 / 12:56 PM / a year ago

UPDATE 1-Saudi Aramco cuts November Arab Light crude OSP to Asia

(Adds table, details)

DUBAI, Oct 5 (Reuters) - Top oil exporter Saudi Arabia has cut the price of flagship crude grade Arab Light to its Asian customers for November, state oil giant Saudi Aramco said on Wednesday, tracking weakness in the Dubai benchmark.

Saudi Aramco has cut its November price for its Arab Light grade for Asia by 25 U.S. cents a barrel versus October to a discount of 45 cents a barrel to the Oman/Dubai average, it said on Wednesday.

The company typically sets its crude prices based on changes in the Dubai market structure as well as recommendations from customers and after calculating changes in the price of its oil over the past month, based on yields and product prices.

Four refiners expected the official selling price (OSP) for Arab Light to fall by 20 cents to 50 cents a barrel in November from the previous month, according to a Thomson Reuters survey.

Aramco also cut the price for its Arab Medium to Asia by 10 cents and Arab Heavy by 50 cents from October levels. Traders have said demand for heavier grades is robust due to stronger fuel oil cracks.

Saudi crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million barrels per day (bpd) of crude bound for Asia.

Aramco lifted prices for its crude in October, tracking a stronger Dubai benchmark and a recovery in Asia's refining margins.

Its October prices were higher than expected to compensate for a deep cut in light grades in September, traders said.

Aramco has scheduled maintenance at its Yanbu and Ras Tanura refineries in November and December, which could mean more Arab Light and Arab Heavy crude exports during the shutdowns, trade sources said.

The state oil company dropped its Arab Light OSP to Northwest Europe by 45 cents a barrel for November from the previous month at a discount of $5.20 a barrel to the Brent Weighted Average (BWAVE).

The Arab Light OSP to the United States was set at a premium of 35 cents a barrel to the Argus Sour Crude Index (ASCI) for November, down 10 cents a barrel from the previous month.

The tables below show the full FOB prices for November in U.S. dollars. Saudi term crude supplies to the United States are priced as a differential to the Argus Sour Crude Index (ASCI). United States

NOVEMBER OCTOBER CHANGE

EXTRA LIGHT +1.80 +1.60 +0.20 LIGHT +0.35 +0.45 -0.10 MEDIUM -1.05 -0.95 -0.10 HEAVY -1.85 -1.45 -0.40 Prices at Ras Tanura destined for Northwest Europe are set against the Brent crude weighted average (BWAVE): NW EUROPE

NOVEMBER OCTOBER CHANGE EXTRA LIGHT -3.35 -2.95 -0.40 LIGHT -5.20 -4.75 -0.45 MEDIUM -6.25 -5.95 -0.30 HEAVY -7.90 -7.55 -0.35 Saudi term crude supplies to Asia are priced as a differential to the Oman/Dubai average: ASIA

NOVEMBER OCTOBER CHANGE SUPER LIGHT +3.40 +3.45 -0.05 EXTRA LIGHT +0.95 +1.00 -0.05 LIGHT -0.45 -0.20 -0.25 MEDIUM -1.35 -1.25 -0.10 HEAVY -3.30 -2.80 -0.50 Prices at Ras Tanura for Saudi oil destined for the Mediterranean are set against the BWAVE: MEDITERRANEAN

NOVEMBER OCTOBER CHANGE EXTRA LIGHT -2.90 -3.00 +0.10 LIGHT -4.75 -4.65 -0.10 MEDIUM -5.80 -5.80 0.00 HEAVY -7.40 -7.10 -0.30 (Reporting by Rania El Gamal in Dubai and Asia Energy Desk; Editing by Susan Fenton)

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