• 3 minutes e-car sales collapse
  • 7 minutes Energy Armageddon
  • 11 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 6 hours America Is Exceptional in Its Political Divide
  • 1 day Cummins showcases 15L fuel-agnostic engine platform; hydrogen, diesel, biogas 16 March 2023
  • 6 days Gazprom and Rosneft super result
  • 11 hours *****5 STARS - "The Markets are Rigged" by The Corbett Report
The Willow Oil Controversy, Explained

The Willow Oil Controversy, Explained

The $8 billion Willow project…

Goldman Sachs No Longer Sees $100 Oil In 2023

Goldman Sachs No Longer Sees $100 Oil In 2023

Previously expecting Brent to hit…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Saudi Arabia Lifts Crude Prices To Asia To Record High

  • Saudi Arabia hiked its OSPs for September loadings to Asia to new highs.
  • Arab Light to the Far East is now set at $9.80 over the Oman/Dubai Benchmark.
  • Saudi Arabia also raised the price of crude oil heading to the United States, North West Europe, and the Mediterranean.

OPEC’s most prolific oil producer and exporter, Saudi Arabia, has raised the official selling price of its crude oil to new highs for September loadings.

Saudi Arabia raised the price of all of its crude grades to its prized market, Asia, for September. Saudi Arabia raised the September price of Arab Light to the Far East by $0.50 per barrel to $9.80 over the Oman/Dubai benchmark.  

OPEC’s largest producer, Saudi Arabia, typically adjusts the selling price of its crude oil a day after the monthly OPEC+ meeting. On Wednesday, the group met to discuss September production plans, ultimately deciding to raise the September quota by 100,000 bpd—26,000 bpd of which was allocated to Saudi Arabia.

Saudi Arabia also raised the price of crude oil heading to the United States, North West Europe, and the Mediterranean. Other OPEC producers often reset their prices too, following Saudi’s pricing action. It is also largely seen as a bellwether for how Saudi Arabia views future oil demand.

The pricing adjustment paints a more complete picture of the direction the market could be headed. Yesterday, OPEC raised its production quota, indicating that there was an increased need for production beyond its August target (which was already 648,000 bpd over July’s—a move that typically signals that the group sees a greater call on OPEC oil. But today, Saudi Arabia is sending a message to the market that is a bit different; it wants to cool the demand for its exports by hiking prices. This is typically a signal to the market that the Kingdom sees no need for additional production.

Saudi Arabia did make a few downward adjustments with its Extra Light grades to North West Europe and the Mediterranean.

By Julianne Geiger for Oilprice.com


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on August 04 2022 said:
    The Saudi price hike could be interpreted in two ways. The first is Saudi Arabia taking advantage of the current high prices to raise its oil revenues from the same volume of crude exports since it has no spare production capacity to raise its production and therefore its exports.

    The second way is signalling to the global oil market not to expect any meaningful rise in OPEC+ production since OPEC+ has hardly a spare capacity.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News