S. Arabia raises crude price for Asia

Saudi Arabia has increased the September price of Arab Light crude for Asia by $0.20 a barrel, the first rise in three months, signalling confidence in demand.

This new price is $2 above the Oman-Dubai benchmark but less than the $0.50 increase expected by analysts. Conversely, Saudi Arabia has cut prices for Europe by $2.75, the largest reduction since the pandemic, and reduced US prices as well.

The price changes follow OPEC+ decision to maintain current oil supply levels and tentative plans to resume production next quarter. Although demand in Asia is expected to be strong, there are concerns about a potential supply surplus later this year if OPEC+ unwinds its production cuts.

Attribution: Bloomberg