Saudi Arabia raises September oil prices for Asia, lowers them for other markets

Shafaq News/ Saudi Arabia, the world's largest oil exporter, announced an increase in the official selling price of its Arab Light crude for Asia in September for the first time in three months while lowering prices for other markets.

Saudi Aramco stated that the kingdom raised the price of its Arab Light crude to $2 per barrel above the Oman/Dubai average, an increase of 20 cents. Additionally, it raised the prices of other light grades destined for Asia while keeping the prices of medium and heavy Arab crude unchanged.

According to a Reuters poll, it was expected that Aramco would raise the prices of all crude oil grades by at least 50 cents per barrel in September compared to August. However, a trader in Singapore attributed the smaller-than-expected increase to weak refining margins in Asia and the start of annual supply negotiations.

In a related development, the OPEC+ ministers' meeting on Thursday maintained the current production policy, including a plan to begin easing some production cuts starting in October, while emphasizing the possibility of suspending or adjusting this increase if necessary.

OPEC+ is currently reducing production by 5.86 million barrels per day, equivalent to about 5.7% of global demand, as part of measures agreed upon since 2022 to support the market amid uncertainties about global demand and increasing supply outside the group.

Aramco sets crude oil prices based on customer recommendations and changes in the value of its oil during the previous month, taking into account returns and product prices.