Saudi Aramco Raises Asia Official Selling Price

View of the production facility at Saudi Aramco's Shaybah oilfield (File Photo: Reuters)
View of the production facility at Saudi Aramco's Shaybah oilfield (File Photo: Reuters)
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Saudi Aramco Raises Asia Official Selling Price

View of the production facility at Saudi Aramco's Shaybah oilfield (File Photo: Reuters)
View of the production facility at Saudi Aramco's Shaybah oilfield (File Photo: Reuters)

Saudi Aramco raised its May official selling price (OSP) to Asia for its flagship Arab Light crude to $9.35 a barrel above Oman/Dubai crude, its highest premium ever.

Oil jumped more than 3 percent on Monday to $108 a barrel as the release of strategic reserves by consuming nations failed to address supply concerns arising from Russia's invasion of Ukraine and the failure of an Iran nuclear deal.

The invasion in February severely heightened supply concerns that were already supporting prices.

Sanctions against Russia and shunning buyers of Russian oil have already reduced production and raised fears of even more significant losses.

"Will liberating barrels from the strategic reserves fill the shortage caused by sanctions and buyer alienation from Russian oil? In short, no," said Stephen Brennock of BVM oil brokerage.

Brent crude rose $3.19, or 3.1 percent, to $107.58 a barrel. US West, Texas Intermediate crude rose $3.46, or 3.5 percent, to $102.73. Both contracts were down more than $1 earlier in the session.

Crude oil fell about 13 percent last week after US President Joe Biden announced a record release of US oil reserves, as members of the International Energy Agency pledged more wiretapping of the reserves.

The price of crude oil reached $139 last month, the highest level since 2008.

Oil also got a boost from stalled talks in Vienna to revive the Iran nuclear deal, which would allow sanctions on Iranian oil to be lifted.

On Monday, Iran blamed the United States for the ceasefire.

The downward pressure came from the armistice in Yemen, which may mitigate supply threats in the Middle East.

For the first time in the seven-year conflict, the United Nations-brokered a two-month truce between a Saudi-led coalition and the Houthi movement. The Houthis attacked Saudi oil facilities during the fighting.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.