Saudi Arabia announced higher Crude Oil pricing to Asia and the United States, after the Organization of the Petroleum Exporting Countries and partner countries (OPEC+) resolved to extend production cuts target, meaning the actual oil market supply is continuing to tighten.
Saudi Arabia raised the official price of oil shipped to the East in April, the highest since the country briefly launched a price and supply war a year ago. Saudi Arabia’s export oil prices to Asia have remained at an eight-month high for the past two months, and now the premium for light crude has been raised further to the highest since March 2020. This implies that Saudi Arabia believes demand will continue, even though OPEC+ unexpectedly kept oil supplies mostly on hold last Thursday (4); this news inspired Brent oil prices to rise.
Saudi Arabian National Oil Company (Saudi Aramco) raised pricing for Arabian light crude sold to Asia by 40 cents per barrel, a $1.40 per barrel premium to benchmark crude. Aramco also raised prices for other crude it sells to Asia, but left its heavy crude unchanged, according to oil traders and refiners interviewed by Bloomberg.
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