(Bloomberg) -- Saudi Arabia raised pricing for August oil shipments to Asia, the U.S. and northern Europe amid signs that energy demand is continuing to recover from its coronavirus-triggered collapse.
The move comes as the world’s biggest crude exporter pushes other major producers to join it in cutting supply to re-balance the market.
State producer Saudi Aramco lifted the official selling price for flagship Arab Light crude to customers in Asia, its biggest market, for a third-straight month, though by less than traders expected. The grade will sell in Asia at $1.20 a barrel above the Middle East benchmark, compared with a $0.20 premium for July, the company said in a statement. Traders and refiners, who are struggling to deal with low margins, expected the premium to climb to $1.45, according to a Bloomberg survey.
Aramco increased all its grades to Asia by $1 a barrel for August. It raised U.S. pricing by between $0.20 and $0.40, with the Light grade hiked by $0.30 to a premium of $1.65. Prices for most grades sold to northwestern European customers -- the main hub for which is Rotterdam -- were also increased. The only region to see cuts was the Mediterranean, where Aramco reduced prices by as much as $1 a barrel.
Saudi Arabia and Russia have led the OPEC+ cartel’s push since last April to reduce crude production and drain stockpiles. The group agreed in June to extend cuts totaling nearly 10 million barrels a day -- roughly 10% of world supply before the pandemic hit -- for a third month until the end of July. They plan to scale them back after that.
|
August OSPs to Asia |
Change |
Premium |
|
Arab Super Light |
+$1/bbl |
$2.65/bbl |
|
Arab Extra Light |
+$1 |
$1.20 |
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