Saudi Arabia adjusts crude oil prices amid global supply adjustments
(MENAFN) Saudi Arabia, the leading global exporter of oil, has increased the official selling price for its Arab Light crude oil to Asia for September, marking the first such adjustment in three months. According to a statement from Saudi Aramco, the price for Arab Light crude sold to Asia has been raised by 20 cents to USD2 per barrel above the Oman/Dubai average. In contrast, the prices for crude oil sold to other regions have been reduced. The increase in the price for Arab Light crude is part of a broader adjustment, with other light crude grades also seeing price hikes for Asia, while the prices for Arab Medium and Heavy crudes remain unchanged.
Despite this increase, the overall rise in crude prices has been less than anticipated. A survey had predicted that Saudi Aramco would increase the selling price for all crude grades by at least 50 cents per barrel in September compared to August, aiming to align with the gains seen in Dubai crude the previous month. However, a Singapore-based trader suggested that the modest price rise is likely due to weaker refining margins in Asia and the upcoming annual supply negotiations.
Additionally, a recent meeting of OPEC+ ministers confirmed that the group’s production policy would remain unchanged, including a plan to start reducing output cuts from October. OPEC+ has been implementing production cuts totaling 5.86 million barrels per day, representing about 5.7 percent of global demand, in a series of measures initiated since 2022 to stabilize the market amid global demand uncertainties and increasing supply from outside the group. The possibility of pausing or reversing these output increases remains on the table, reflecting the group’s cautious approach to managing global oil supply and demand dynamics.
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