• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days The United States produced more crude oil than any nation, at any time.
  • 8 days e-truck insanity
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 8 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 11 days Bankruptcy in the Industry

Saudi Arabia Raises Oil Prices for Asia

Saudi Arabia raised the official selling prices of its crude for Asian buyers following the extension of the OPEC+ production cut agreement until the end of the first half of the year.

The price for the country’s flagship Arab Light grade was raised by $0.20 per barrel over the Oman/Dubai average, Reuters reported, meaning April deliveries will cost $1.70 per barrel more than the Oman/Dubai average, up from $1.50 per barrel this month.

At the same time, Aramco lowered its prices for European buyers, by between $0.60 and $0.70 per barrel. Prices for sales to the United States were virtually unchanged.

The price hike comes despite expectations by some in the oil industry that the Saudis would leave the Aril prices unchanged from March.

"The market structure and product cracks didn't change too much compared to last month, and I think now with Red Sea shipping still having uncertainty ... probably they will want to push the barrels to Asia," one unnamed source from the downstream industry told Reuters earlier this month.

OPEC+ last weekend agreed to extend its production cuts as benchmark prices remained stubbornly range-bound, largely on expectations of weak demand growth and additional supply from non-OPEC producers that could satisfy most of the new demands coming this year.

Not everyone agrees that it would be enough. Some, including the EIA, expect much weaker production growth in the U.S., which is regularly given as an example of the non-OPEC supply that is expected to cover additional demand. The actual demand growth rate for the year will only become known much later. Some do not exclude a deficit in oil markets.

Most analysts, however, expect oil prices to remain around where they are now throughout the year driven by slow economic growth that normally tends to sap demand for oil and gas.

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

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