Saudi Arabia raised the prices of selling light Arab crude to all destinations in July, a day after OPEC, led by Riyadh, and its allies agreed to extend record production cuts until the end of July.
Aramco said in a statement yesterday that it raised the official selling price of Arab light crude to Asia in July by 20 cents a barrel, an increase of 6.10 dollars from June.
The market expected an increase in the official selling price of Arab crude to Asia next month, but the increase was greater than expected.
A Reuters poll stated that Saudi Arabia is expected to raise the official selling price for Arab light crude in July by an average of $ 3.80 a barrel.
The increase in the official selling price may reduce the demand for Saudi crude, and push other Gulf producers to impose similar price increases.
Saudi Arabia announced that it would cut production in June by one million barrels per day, which is a further reduction from the amount agreed with the OPEC + group, but did not clarify whether it would continue the voluntary reduction in July.
The company also raised the official selling price for its Arab light crude to the United States to be determined at a premium of $ 1.35 a barrel above the price of the Argus index of high-sulfur materials, up 60 cents per barrel compared to June.
Aramco also increased the official selling price of Arab light crude to northwest Europe, 30 cents a barrel above Brent crude, up four dollars from the previous month.