UPDATE 2-Saudi Arabia hikes June crude oil prices for most regions

-1.73%

SAUDI ARAMCO

2222.SA

23.90

-1.73%

Aramco raises crude prices for Asia, Europe, Mediterranean

June Arab Light OSP to Asia hits 5-mth high

Keeps Arab Light crude price in U.S. unchanged

Recasts, adds comments, prices for various regions

By Florence Tan and Nayera Abdallah

May 5 (Reuters) - Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, a statement from Aramco showed on Sunday, signaling expectations of strong demand this summer.

The world's top exporter hiked its flagship Arab Light crude oil price to Asia to $2.90 a barrel above the Oman/Dubai average in June, the highest since January.

It also raised the June Arab light crude prices to northwest Europe and the Mediterranean to $2.10 and $2 a barrel above ICE Brent, respectively, while keeping the price in the United States unchanged at $4.75 a barrel above ASCI.

The price hikes for most Saudi crude grades in Asia were at the higher end of traders' expectations in a Reuters survey .

Some traders questioned the ability of Asian refiners to absorb higher Saudi crude costs as refining margins in Asia dropped nearly $2 a barrel in April from March. DUB-SIN-REF

State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi crude OSPs set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day (bpd) of crude bound for Asia.

Saudi term crude supplies to Asia are priced as a differential to the Oman/Dubai average:
	JUNE	MAY	CHANGE
SUPER LIGHT	3.45	2.95	0.50
EXTRA LIGHT	2.80	2.10	0.70
LIGHT	2.90	2.00	0.90
MEDIUM	2.35	1.35	1.00
HEAVY	1.60	0.50	1.10

Prices at Ras Tanura destined for United States are set against ASCI:
	JUNE	MAY	CHANGE
EXTRA LIGHT	7.00	7.00	0.00
LIGHT	4.75	4.75	0.00
MEDIUM	5.45	5.65	-0.20
HEAVY	5.10	5.30	-0.20

Prices at Ras Tanura destined for Northwest Europe are set against ICE Brent:
	JUNE	MAY	CHANGE
EXTRA LIGHT	3.70	2.00	1.70
LIGHT	2.10	0.30	1.80
MEDIUM	1.30	-0.40	1.70
HEAVY	-1.10	-2.80	1.70

Prices at Ras Tanura for Saudi oil destined for the Mediterranean are set against ICE Brent:
	JUNE	MAY	CHANGE
EXTRA LIGHT	3.70	1.70	2.00
LIGHT	2.00	-0.10	2.10
MEDIUM	1.40	-0.60	2.00
HEAVY	-1.30	-3.30	2.00

(Reporting by Florence Tan, Writing by Nayera Abdallah and Nadine Awadalla, Editing by Angus MacSwan and Deepa Babington)

((Nayera.Abdallah@thomsonreuters.com;))

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