Saudi oil hike shocks some Asian buyers without better options

Saudi Arabia’s steep hikes to its crude prices for July have shocked some Asian refiners even as the region leads a rebound in global energy consumption following coronavirus lockdowns. Aramco’s price boost for its flagship Arab Light crude to Asia -- which accounts for more than half of Saudi oil sales -- was the biggest in at least 20 years, exceeding the most bullish expectations in a Bloombersurvey. However, two refiners are still seeking to buy their regular volumes because of the lack of alternative options, while another processor is weighing the cost benefit of replacing some cargoes from the kingdom with floating storage or arbitrage supplies, according to people familiar with the matter.Aramco increased Arab Light by $6.10 a barrel from June, according to a pricing list seen by Bloomberg. Across all of the producer’s grades, Super Light and Extra Light saw the biggest increases, while heavier crudes saw slightly smaller gains. Three refiners are considering their supply options after the move, said the people.