Aramco, Saudi Arabia’s state oil producer, has increased its official selling prices (OSPs). Asia prices for crude oil are up by $1/barrel in August while for Europe and the U.S, the producer raising the prices for almost all grades. August prices to Asia from Saudi Arabia has set with a $1.20/barrel increase compared to the Oman/Dubai average. Aramco raised its Arab Light crude to the United States higher by $1.65/barrel over ASCI (Argus Sour Crude Index), or up $0.30 from July. The Arab Light OSP also rise to Northwestern Europe to higher $0.70/barrel over ICE Brent, or $0.40 compared with the previous month. The move was aligned with market expectations with the Middle East rising benchmarks and Asian refining margins revival.
Even though the price rise might refrain the demand for Saudi oils, the inventory usage will be encouraged and build stronger support for oil demand and prices, analysts and industry players said.
OPEC+ is still cutting their collective output by 9.7 million barrel/day for the third month as a move to support prices and strengthen the global demand.
Brent crude is hiking as supported by tighter supplies while U.S WTI futures dropped as more than half the state of the country reported a hike in new coronavirus infection cases, and market signalling the lower demand might occur in the near future.
Saudi crude prices influencing the base prices for Iran, Kuwait and Iraq, widely affecting more than 12 million barrel/day of crude bound for Asia.
