The price is "offered" by the distributors of refined products.

The distributors buy from refiners (unless they are vertically integrated, but still, if the market price is high enough you may decide to sell your refined products wholesale rather than distribute them yourself). So you can say that there is bidding amond distributors to buy from the refiners.

The refiners bid among themselves for crude. We're told the refiners' high bid for  Arab Heavy is lower than Saudi Arabia's asking price. This means that the refiners don't feel they can raise their asking price for refined products, which means that there isn't an unreasonable profit margin being made between refiners and distributors.

So, where are the profit margins? It appears the profit margins are mostly going to the producers.

OPEC can no longer push prices downward by increasing production, but they can push prices higher by withwolding it. They appear to be doing just that with Arab Heavy: asking for a price the refiners won't bear because the market for refined products also won't bear the resulting retail price.

Now, unlike in the 1970's when OPEC's stated reason to withhold production was political (the Yom Kippur war), in this instance the reason is economic. And who can fault them? If they know their balck gold is running out they should husband it, not sell it cheap to Whitey.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes