Saudis Raise Oil Prices More Than Expected Amid Asia Rebound
Saudi Arabia raised oil prices for its biggest market of Asia by more than expected as the region’s main economies ease coronavirus restrictions, helping boost demand. The increase for July shipments resumes a streak of hikes that started in February and was only broken when state producer Saudi Aramco cut prices from record levels a month ago. Aramco raised its key Arab Light crude grade for Asian customers by $2.10 a barrel from June to $6.50 above the benchmark it uses. The market was expecting a boost of $1.50, according to a Bloomberg survey of refiners and traders. Aramco also increased all grades for the north west Europe and Mediterranean regions. Prices for US customers were kept unchanged for the second straight month. The kingdom, the world’s biggest oil exporter, raised prices for shipments sold under long-term contracts after futures surged in the wake of Russia’s invasion of Ukraine. Crude has climbed more than 50% this year to almost $120 a barrel.
OPEC+ agreed on Thursday to accelerate output increases. The 23-nation cartel, led by Saudi Arabia and Russia, said it would add 648,000 barrels a day to the market in each of July and August, about 50% more than its moves in recent months.
Saudi Arabia sends more than 60% of its crude exports to Asia, with China, Japan, South Korea and India being the biggest buyers.
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