Saudi Arabia hiked prices of some crude oil exports by the most in at least two decades to boost the oil market following the extended oil output cut pact of OPEC+.
Saudi-controlled energy company Saudi Aramco arranged its lighter grades into the steepest increases, signaling a good prospect for the variants.
Aramco’s decision was taken after the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) reached an agreement on Saturday to extend its current 9.7 million bpd output cut until the end of July.
All grades to Asia were pushed up by between USD5.60-7.30/barrel, while a survey by Bloomberg only estimated an increase of about USD4/barrel.
The Arab Light for northwest Europe also surged to a 30 cent premium over the benchmark from a discount of USD3.70/barrel.
For oil refiners, the surge in Saudi crudes would squeeze their profits, erasing almost all of the discounts the kingdom made during its price war with Russia earlier this year.
Aramco’s pricings are announced every month and help set the mood in the physical oil market. At the moment, prices are reportedly back to the 2019 level or even 2018 for many grades.
