Saudi Arabia, the world’s top oil exporter, raised crude oil prices in July for Asian buyers to higher-than-expected levels amid concerns over tight supply and expectations of strong summer demand.
The official selling price (OSP) for loading Arab Light oil to Asia in July was raised by US$ 2.1 per barrel, to US$ 6.5 per barrel above the Oman/Dubai quotations.
The rally was much higher than what most of the market had predicted, around $1.50.
Only one of six respondents in a Reuters poll predicted a $2 jump.
“The price jump is unexpected, especially Arab Light. We are intrigued by the decision,” said an Asian oil trader.
The increase by state oil company Saudi Aramco came despite an agreement by OPEC+ members to increase output by 648,000 barrels per day (bpd) in July and a similar amount in August in an effort to make up for a loss of Russian supply.
That volume compares with an initial plan to add 432,000 bpd per month over the three months through September.
But the increases have been split among member countries, including Russia and nations like Angola and Nigeria, which are struggling to meet their targets, prompting fears that the actual increase in supply could fall short of official plans.
Source: CNN Brasil
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