Preempting the global demand revival in Asia, the world’s largest crude oil exporter Saudi Arabia has raised oil for it biggest market of Asia. The rise in price is more than expected on account of demand coming back in major economies including china where Covid-19 restrictions have been eased.
Saudi Aramco raised its key Arab light crude rate for Asian customers by $2.1 /barrel from June to $6.5/barrel which is above the benchmark rate it uses. The kingdom is the world’s largest crude oil exporter and has raised crude oil prices for shipments sold under long-term contracts after prices surged following Russia’s invasion of Ukraine. Saudi Aramco has now raised its April official selling price to Asia for Arab light crude by $4.95/barrel which is even higher than its competitors DME Oman and Platts Dubai crude prices by $2.15/barrel.
Saudi Arabia sends more than 60 % of its crude its crude exports to Asia with China, Japan, South Korea and India being the biggest buyers. Crude has climbed more than 50% this year to almost $120 a barrel. The market has tightened as flows from Russia drops due to U.S and European sanctions. On Wednesday, all producers extended alliance OPEC plus agreed to accelerate output increases. The 23 nation cartel led by Saudi Arabia and Russia said it would add 648000 barrels a day to the market in each of July and August, about 50% more than its current crude oil production rate.