June 3, 2023

Saudi Arabia raises oil prices for Asia higher than expected

Saudi Arabia, the largest exporter of petroleum From the world, raised the prices Crude oil rose in July for Asian buyers to higher-than-expected levels amid concerns about tight supplies and expectations of strong summer demand.

The official selling price for shipping Arab Light Oil to Egypt Asia It was raised in July by $2.1 a barrel to $6.5 a barrel, higher than the prices of Oman and Dubai.

The increase was much higher than expected by most the shopWhich expected an increase of about $1.50. Only one in six respondents to a Reuters poll expected a $2 jump.

“The price jump is unexpected, especially in light Arabic.” “The decision piqued our interest,” said an Asian oil trader.

The increase, which was promoted by the state oil company Saudi Aramco, came despite the agreement of cabinet members OPEC + To increase production by 648,000 barrels per day in July and a similar amount in August in an effort to offset the loss of Russian supplies.

This compares with an initial plan to add 432,000 b/d per month over the three months to September.

But the increases were split between member states, including Russia And countries such as Angola and Nigeria, which are struggling to achieve their goals, leading to concerns that the actual increase in supply may not live up to official plans.