Saudi Arabia raises oil prices for US and Asia

Saudi Arabia has pushed up oil prices for buyers in Asia and the United States, in a sign that it sees demand remain strong despite the spread of the coronavirus’s Micron mutation, according to Bloomberg.

This move comes a few days after OPEC + surprised traders with its decision to increase crude production, by 400,000 barrels per day for January.

Saudi Aramco has raised its price for January crude for Asia and the US, according to a statement from the state oil company. In particular, the price of crude Arab Light for delivery to Asia increased by 60 cents from December to $ 3.30 per barrel.

It is recalled that OPEC + on Thursday chose to increase production for January, despite concerns that the Omicron variant could lead to a reduction in demand due to new restrictive measures and despite the fact that the organization expects a surplus in early 2022. .

Brent crude has fallen 15% since the end of November, just below $ 70 a barrel, with earnings so far this year falling to 35%. The decline is mainly due to the Omicron mutation and the prospect of higher market supply from OPEC + and the US heading to release of strategic crude stock, in order to reduce domestic fuel costs.

Although the rise in Aramco prices was in line with a Bloomberg survey, this shows the optimism of the company’s management for demand. The company’s CEO, Amin Nasser, also said last week that he was “very optimistic about demand” and that the market had overreacted to the Omicron variant.

It is noted that Saudi Arabia sends more than 60% of crude exports to Asia, with China, South Korea, Japan and India being the largest buyers. Aramco’s official selling prices (OSPs) serve as a “bell” for the oil markets and often guide the trend in the region.