Saudi Aramco has raised its official selling price for Arab Light crude oil bound for Asia in May, setting it at $19.50 per barrel above the Oman/Dubai benchmark—a sharp rise from the prior month. This adjustment reflects significant increases in regional energy prices linked to escalating tensions in the Middle East.
The latest pricing decision represents a $17 jump compared to April’s premium, resulting in a record rate. This substantial increase comes as the ongoing U.S.-Israeli military offensive against Iran has severely impacted shipping activity through the Strait of Hormuz. Serving as the passageway for roughly one-fifth of the world’s oil shipments, the strait’s partial shutdown has driven Middle Eastern crude oil to become the priciest globally. The Dubai crude benchmark has approached $120 a barrel amid these developments.
Despite an agreement within OPEC+ to raise production quotas by 206,000 barrels per day for May, the heightened hostilities have undermined the group’s ability to deliver on intended output gains. The continued conflict has restricted the movement of energy supplies, fueling uncertainty in oil markets.
