Saudi Arabia increases oil prices for asian markets
Saudi Arabia has once again raised the price of its flagship crude oil for Asian markets, marking the third consecutive month of increases as the kingdom seeks to tighten the global oil market and prevent a surplus.
According to a price list obtained by Bloomberg, state-owned Saudi Aramco has elevated the June official selling price of Arab Light crude for customers in Asia by 90 cents to $2.90 per barrel above the regional Oman-Dubai benchmark. This adjustment exceeds the forecasted increase of 60 cents as anticipated in a Bloomberg survey of six refiners. Additionally, prices for other lighter and heavier crude varieties have also been raised from May levels.
This move underscores Saudi Arabia's commitment to maintaining market tightness amidst diminishing war risks in the Middle East, which have contributed to a decline in oil prices in London. Most traders and analysts surveyed by Bloomberg expect that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will extend their output cuts, potentially until the end of the year.
Despite ongoing tensions between Iran and Israel, the outlook for oil remains uncertain due to concerns about China's economy and ample crude supplies from non-OPEC countries such as the United States. Moreover, there are indications of weakening demand for diesel, a fuel often considered a gauge of economic activity.
In addition to Asian markets, customers in Europe have also witnessed significant increases in Saudi Arabia's oil prices for June sales, while rates for the United States have remained relatively stable.
According to a Bloomberg survey, OPEC pumped approximately 26.81 million barrels per day in April, representing a slight decrease of about 50,000 barrels per day compared to the previous month.
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