Saudi Arabia hikes Arab Light crude prices for Asia to record-high premium

April 6 (Reuters) - Saudi Arabia has set the official selling price of May Arab Light crude oil to Asia at a record premium of $19.50 a barrel above the Oman/Dubai average, an increase of $17 from the previous month, Saudi Aramco said on Monday.

The sharp jump comes at a time when Middle East oil has become the world's most expensive as the U.S.-Israel war on Iran limited shipping through the Strait of Hormuz, a key chokepoint for a fifth of the world's oil supplies.

It remains unclear when or if a ceasefire will be reached or when oil exports from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait, Qatar and Bahrain can resume through the Strait.

Aramco's 2222.SE May Mediterranean OSP for Arab Light was set at a $27.65 premium to ICE Brent, up from a $2.65 premium the prior month.

The company's Arab Light OSP for Northwest Europe jumped to a $27.85 premium versus ICE Brent, up by $25 per barrel and its price for North American customers rose to a $14.60 premium to ASCI, $10 higher.

The hike in prices comes after OPEC+ agreed on Sunday to raise its oil output quotas by 206,000 barrels per day for May, a modest rise that will largely exist on paper as its key members are unable to raise production due to the war.

Last month, Middle East high-sulphur crude benchmark Dubai rose to nearly $170 a barrel during trading in the S&P Global Platts Market on Close process.

The Dubai cash price's premium to swaps averaged $38.30 a barrel in March, up from an average of 90 cents a barrel in February, Reuters data showed. CRU/M

Saudi Aramco looks at the premium data for indications of the backwardation, or the market structure when prompt prices are higher than later supply, and uses that to help set its official selling prices.

The state oil giant sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.