Saudi Aramco, the leading global oil exporter, has increased its crude prices for Asian markets for February. This marks the first rise in three months, coinciding with OPEC+ extending production cuts and reduced supplies from Russia and Iran.
The official selling price for Arab Light crude has been raised by 60 cents, reaching $1.50 per barrel above the Oman/Dubai benchmark. This adjustment follows a previous low premium of 90 cents in January. Prices for other grades sold to Asia have also seen increases.
For the European and Mediterranean markets, Aramco has raised prices by $1.30 per barrel across all grades. Conversely, prices for the U.S. have been reduced by 30-40 cents per barrel.
The price hike for Arab Light in Asia surpassed expectations, attributed to a significant rise in spot premiums at the end of December. Traders noted this was due to uncertainty surrounding Iranian and Russian supplies.
Iranian crude prices have surged, particularly in China, due to U.S. sanctions impacting shipping logistics. In India, refiners are turning to Middle Eastern oil to offset reduced Russian supplies.
Middle East crude prices are expected to remain strong, as the U.S. plans further sanctions on Russia. This follows OPEC+’s decision to delay output increases until April and extend production cuts until 2026 due to weak demand and rising output from other producers.