Saudi Arabian Oil Co., known as Saudi Aramco, has offered discounts across most crude grades for Mediterranean customers loading crude oil in March, according to its latest official selling prices, known as OSPs.

The move comes as Iran sees the Mediterranean as a key market when it ramps up oil exports to Europe following the lifting of sanctions. Turkey, Spain and Italy were the main European buyers of Iranian crude before sanctions were imposed.

Saudi Aramco, the world's largest oil exporter said Thursday that Mediterranean prices have been discounted across extra light, light and medium, which decreased by $0.75, $0.30 and $0.20 a barrel, respectively. The heavy grade increased by $0.60 a barrel.

Asian prices for its medium grade increased by $0.10 and heavy by $0.70. Its light grade dropped by $0.20 a barrel, extra light and super light also fell by $0.40 and $1.60 a barrel, respectively.

U.S. prices were largely unchanged, with light and heavy steady, but extra light down by $0.20 a barrel. Medium increased $0.10 a barrel.

Northwest European prices are less cheap than those offered last month. Extra light and light were cut by $0.30 and $0.10 a barrel, respectively, but medium and heavy increased by $0.40 and $0.80 a barrel, respectively.

Saudi Aramco sets its OSPs relative to regional benchmark crude oil prices. It sells at different prices in different regions, mainly to reconcile buyer demand with market fluctuations in those benchmarks.

The price-setting process is typically a technical move with little impact on the broader market. But in recent months, given the steep drop in global crude prices, the settings have been closely followed by market watchers looking for clues on the intended direction of Saudi oil policy.

Write to Miriam Malek miriam.malek@wsj.com<mailto:miriam.malek@wsj.com>

 

(END) Dow Jones Newswires

February 04, 2016 08:05 ET (13:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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