The Kingdom of Saudi Arabia has raised oil prices to its largest markets in Asia more than expected, coinciding with the high demand for high requests in the epidemic area imposed.
The increase in July shipments resumes a series of increases that the Kingdom started in February and was only broken when the government company “Aramco” reduced prices from record levels for this month.
ARAMCO raised the main light Arab crude to its Asian customers by $ 2.10 a barrel from June to $ 6.50 more than the record crude prices it uses, while the market is expected to increase the amount of demand.
The Kingdom, the world’s largest oil exporter, raised the price of shipments sold under long-term contracts after the high value of futures contracts in the wake of the Ukrainian crisis. Prices have jumped more than 50 % this year to nearly $ 120 a barrel.
The markets are increasingly disturbing the drop in flows from Russia due to US and European sanctions, in addition, Asian countries such as China and Singapore end the closure that hindered the demand in the past two or three months.
On Thursday, OPEC +agreed to increase production, and the 23rd alliance – Congrees, led by the Kingdom of Saudi Arabia and Russia, said that it would add 648 thousand barrels per day to the market in July and August, an increase of 50 % over the previously scheduled addition.
However, most analysts said that the group is unlikely to achieve its goals because many members, even except Russia, are struggling to pump more production.