Saudi Arabia raised oil prices for Asian buyers to record levels, as global oil markets remain tight despite signs of softening demand as the economy slows.
Saudi Aramco raised the price of Arab Light crude for next month’s shipment to Asia by $9.80 a barrel, a record premium and above the regional benchmark, up 50 cents from August. Traders and refiners had expected a $1.50 hike, according to a Bloomberg survey in late July.
On Wednesday, OPEC+, led by Saudi Arabia and Russia, responded to months of U.S. diplomatic efforts to increase oil supply with the smallest output increase ever.
The price of Brent crude soared to around $130 a barrel at one point in the wake of the Russia-Ukraine conflict . But oil prices fell amid growing fears of a possible recession in the U.S. and Europe.
Saudi Arabia is the world’s largest oil exporter, selling most of its crude to Asia . Saudi Aramco’s monthly pricing decisions are seen as a bellwether for the oil market and are often followed by other major Persian Gulf producers. Oil prices are still falling, with Brent crude falling nearly 4% yesterday.