Saudi Arabia may slightly increase its crude prices for Asian buyers in June for the first time in three months, tracking gains in benchmark prices this month, refiners said.
The June official selling price for flagship Arab Light crude may rise by 10 to 30 cents to $1.30-1.50 a barrel from the previous month, four Asian refining sources said in a Reuters survey.
The producer cut its May prices to close to their lowest level in four years, after the Organisation of the Petroleum Exporting countries and their allies, a group known as OPEC+, agreed to advance their plan to phase out oil output cuts by increasing output by 411,000 barrels per day in May, three times more than the group originally planned.
The surprise supply boost and demand concerns driven by the Sino-US trade war sent oil prices plunging to a multi-year low earlier this month.
The fall in prices stimulated demand with Chinese buyers who increased purchases of Middle Eastern barrels. Uncertainty over Iranian oil supply and restocking activities ahead of firmer seasonal demand in May also boosted China's oil purchases.
As a result, Middle East benchmarks gained this month, with the average spot premium for Dubai rising by 40 cents a barrel from last month.
Market participants are closely watching the outcome of Opec+'s meeting on May 5 for their June output plan.
Several Opec+ members will suggest the group accelerates oil output hikes in June for a second consecutive month, sources familiar with Opec+ talks told Reuters last week.
Another round of output hike could cap gains in benchmark prices, the survey respondents said.
June official prices for Saudi's other grades - Arab Extra Light and Arab Medium - are expected to increase by at least 25 cents a barrel, the survey showed.
Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day of crude bound for Asia.
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 last month, based on yields and product prices.
Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs. -Reuters