07.07.202010:43 Forex Analysis & Reviews: Saudi Arabia raises oil prices

Due to the rising energy demand, Saudi Arabia raised the prices of oil supplied to Asia, the United States and Northern Europe in August.

According to reports, Saudi Aramco raised the official selling price of all varieties of oil by $ 1 per barrel to its customers in Asia, while in the US, prices are at $ 0.20–0.40. Light crude oil, on the other hand, was increased by $ 0.30, which was less than expected.

Prices for most varieties sold to customers from northwestern Europe, whose main center is Rotterdam, have also been raised, and the only region that saw a reduction in prices was the Mediterranean, where Aramco cut prices by $ 1 per barrel.

Saudi Arabia and Russia have led the OPEC + cartel to reduce oil production and reserves to combat the crisis in the oil industry caused by the coronavirus pandemic. In June and until the end of July, the group agreed to extend the reduction by a total of about 10 million barrels per day, which is identical to about 10% of global supplies before the pandemic.

As of the moment, OPEC + is "on the right track", but there is still a long way to go before the oil industry regains balance. According to the tanker tracking of Bloomberg, Saudi Arabia has reduced supplies to a multi-year low in June.

Following the OPEC + agreement in April, Brent crude more than doubled to about $ 43 per barrel, but the global benchmark is still down 34% this year.

Meanwhile, oil exports from Libya are expected to decrease in July, and the chairman of its state-owned company said that any recovery in production will take months to be completed.