Kuwait raises the selling prices of oil to its customers in Asia during April

Kuwait raised the official selling price for its oil shipments for the month of April (2023) to its customers in Asia, following in the footsteps of Saudi Aramco.

The KPC price document – which was seen by the specialized energy platform – for shipments for the month of April, showed that the price of a barrel of Kuwaiti oil was raised to customers in Asia, America and Europe.

This comes within the framework of KPC’s keenness to maintain its share in the Asian market, in light of the competition imposed by the Russian supplies of relatively cheap crude.

Kuwaiti raw materials prices

KPC set the price of Kuwaiti export crude for the month of April at $2.15 a barrel above average prices for Oman and Dubai crude, an increase of 75 cents compared to shipments in March, which recorded $1.40 a barrel above Oman/Dubai prices.

KPC also set light crude oil prices for Kuwait for the month of April at $2.6 per barrel, higher than those for Oman/Dubai, up 55 cents from the previous month.

The increase in the price of a Kuwaiti oil barrel was higher compared to Saudi Aramco prices, which rose by $0.5 a barrel during next April for its customers in Asia.

The CEO of KPC, Sheikh Nawaf Al-Sabah, confirmed that his country had not lost any share in the Asian market.

Al-Sabah said – on the sidelines of his participation in the CERA Week held in the American city of Houston – that the Chinese demand for oil is growing strongly, with the unleashing of the “pent-up demand” accumulated during the Corona pandemic period.

Aramco prices

Saudi Aramco raised its official selling prices for Arab Light crude to Asia by $0.50 per barrel to $2.5 per barrel above Oman/Dubai levels, according to a pricing document seen by the specialized energy platform.

And last February 2023, Aramco announced an unexpected increase in the price of Saudi oil to Asia this March, becoming the first increase in 6 months.

The increase in Kuwaiti and Saudi oil selling prices comes amid prospects for a recovery in demand in China, after spot transactions during the current month showed an increase.

Middle Eastern crudes are struggling to compete with increased inflows from Russia, as Moscow diverts more oil – including Arctic crude – to the Asian market from Europe.

Calculations based on data from the Dubai Mercantile Exchange showed that the official selling price of Omani crude rose $1.31 to $82.23 a barrel in April.

Aramco prices usually set the direction for Iranian, Kuwaiti and Iraqi prices, which affects about 9 million barrels per day of crude destined for Asia.

Iraqi oil prices

The Iraqi Oil Marketing Company “SOMO” also raised the prices of its crude oil exports for April loads to Asia Pacific and Europe.

A SOMO document revealed that the official selling price of Basra Medium crude to Asia had been raised by about $0.95, compared to shipments for the current month of March, while Basra Heavy crude shipments were raised by $1.95 a barrel.

Saudi Aramco raised its April comparability prices for Arab Medium and Arab Heavy crude to customers in the Asia-Pacific region by 90 cents per barrel and $2.50 per barrel, respectively.

SOMO raised April prices for its exports to Europe of Basra Medium and Heavy crude by $1.25 and $1.75 per barrel, respectively.

European SOMO prices are generally in line with the monthly adjustments implemented by Aramco, with regard to customers in northwest Europe, as the Saudi company raised the April price of Arab medium and heavy crude by $ 1.30 per barrel compared to the current month of March.

Iraq raised the price of Basra Medium crude for the month of April for its US customers by 30 cents a barrel over the course of the month, Argos Media reported.