Saudi Aramco sharply raises oil prices

Saudi Aramco has sharply raised the official selling price of all the nation’s crudes to all buyers, Report informs referring to Bloomberg.

Aramco increased pricing for its key Arab Light grade of crude for Asian customers in December by $1.40 to $2.70. The state producer had been expected to raise it by between 50 cents and $1 a barrel, according to a survey last week.

Excluding a brief period last year when Saudi Arabia and Russia were coming out of a price war, the month-on-month price increase for Arab Light to Asia is the second largest in 20 years.

Analysts expect the oil market to remain under-supplied over the rest of the year following the decision by OPEC+, led by Saudi Arabia and Russia.

The continued supply curbs from the Organization of Petroleum Exporting Countries and partners have helped oil prices surge 60% this year to more than $80 a barrel.

Saudi Arabia sends more than 60% of its crude exports to Asia, with China, South Korea, Japan and India the biggest buyers.