RIYADH: In an official statement released on Sunday, Saudi Aramco acknowledged that it has raised the official selling price for crude oil bound for Asia in June, bringing an end to a two-month period of price reductions. The benchmark Arab Light crude price was hiked by $0.20 by the state-owned oil firm, bringing it to $1.40 per barrel over the average price of petroleum in Oman and Dubai. The change is made despite ongoing downward pressure on the world’s oil markets brought on by worries about growing production and a shaky demand forecast.
The action comes after the OPEC+ partnership said on Saturday that it will increase oil output for a second straight month. In June, the group, which included of both OPEC members and important allies like Russia, intends to boost production by 411,000 barrels per day.
The conclusion of the upcoming OPEC+ meeting, which is set for May 5, will further define the group’s production plan going into the summer, and market watchers are already paying careful attention.
Saudi Aramco uses five density-based categories to price its crude oil: Super Light (more than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).
Other significant regional producers, including Iran, Kuwait, and Iraq, use the company’s monthly pricing choices as a benchmark for pricing and influence the price of the approximately 9 million barrels of oil exported to Asia daily.
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