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Saudi grade optimization game – Arab Light vs. Arab Medium? What is the signal for Hormuz?

By Manan Karnik Visit author profile

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Commodity
Crude
Market Hub
Dubai
Price Indicator
Arab Light & Arab Medium
Time Period
Immediate
Market Impact
Bearish for Arab medium vs. Arab Light

Arab Medium is the more exposed grade: the deeper OSP cut into Asia (-$5/bbl vs -$3/bbl for Arab Light), the larger d/d FOB move, and the weaker medium sour cracking margins all point to Arab Medium facing more pricing pressure. The $1/bbl quality premium…

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