Saudi Arabia raised prices for oil shipments to customers in its main market of Asia, signaling the kingdom’s confidence in the region’s economic recovery, according to Bloomberg, Report informs referring to World Oil.
Aramco, the Saudi state energy firm, will increase its grades for Asia in May by between 20 and 50 cents a barrel, according to a statement. It will raise the key Arab Light grade for the region by 40 cents from April to $1.80 per barrel above the benchmark. The company had been expected to hike the grade by 30 cents.
Most prices for North West European customers won’t change, though Arab Light for the region will drop by 20 cents to $2.40 below the benchmark. Most grades to the US will be cut by 10 cents.
Prices for Asia have been above those for Europe and the US for several months, partly due to energy demand in the latter two recovering more slowly from the coronavirus pandemic.
The Organization of Petroleum Exporting Countries and allies such as Russia agreed on April 1 to increase output by 350,000 barrels a day in May, add the same volume again in June and another 450,000 barrels a day in July.