Saudi Aramco raises oil prices to Asia

Saudi Arabia raised oil prices for its main market in Asia after crude hit nearly $95 a barrel.

According to informed sources, state-owned Saudi Aramco raised prices for all grades for Asian customers in March, with the region's main Arab light oil price up 60 cents from February prices, to 2 $80 a barrel above its benchmark.

The crude supply price level in March represents the highest level since March 2020, before "Aramco" cut prices directly with the emergence of the Corona pandemic, while the premium for others Asian qualities jumped from 40 cents to 70 cents.

Brent crude has jumped around 20% since the start of this year to over $93 a barrel, as its rise came at a time when global consumption remained strong despite the spread of the Omicron strain of the virus.

Additionally, oil inventories have fallen over the past year and many large producers are struggling to pump more.

Aramco's decision

Aramco's move comes days after OPEC+ opted to increase daily crude production by 400,000 barrels per day next month, in line with market expectations.

Many energy traders doubt the group, led by Saudi Arabia and Russia, will be able to bring many of its production targets back to market due to supply problems among some of its members.

Saudi Aramco is the largest oil exporter in the world.

More than 60% of its shipments are destined for Asia, with China, Japan, South Korea and India being the main buyers.

The price movements of Aramco's oil supply often determine the price trajectory of other producers in the Middle East.

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