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Saudi Arabia plans to raise oil prices
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The world’s largest exporter of crude oil will value Arab Light for Asia at $10.80 per barrel.
Saudi Arabia will raise the price of Arab Light oil for Asian buyers, despite forecasts that the oil market may sag in September. It is reported by Bloomberg.
The world’s largest crude oil exporter is expected to price Arab Light for Asia at $10.80 per barrel.
The drop in margins for Asian refiners means such an increase could dampen any requests for additional barrels, traders said.
It is noted that in early July, state-owned Saudi Aramco reported that in August Arab Light would cost $9.3 per barrel more for Asian buyers than a basket of oil from Oman and Dubai. Thus, the price increase may amount to $1.5 per barrel.
As traders say, the profitability of Asian refineries is declining and the rise in the price of Saudi oil may limit demand for it. And already in October, the cost of Middle Eastern oil may decrease.
Recall that oil sharply fell in price due to lower demand
It was also reported that European energy companies started making record profits due to rising oil and gas prices. The rise in prices for energy resources was provoked, in particular, by the consequences of Russia’s invasion of Ukraine.
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