Saudi Arabia Will Increase The Price Of Crude Oil For Asia

Saudi Arabia will increase the price of crude oil for Asian countries from April, which will have an adverse effect on inflation.

Saudi Arabian oil producer Aramco has increased the official selling price (OSP) of crude oil for April. This has raised crude oil sold to Asia by more than $2 a barrel.

Global oil prices have risen to their highest level since 2008, raising concerns about inflation.

On the other hand, the United States and European countries have banned imports of Russian oil in view of Moscow’s invasion of Ukraine.

Saudi Aramco said late Friday that the world’s top oil exporter raised its April OSP for its flagship Arab Light crude to $4.95 a barrel against the average of DME Oman and Platts Dubai crude prices.

Refinitiv data showed that this is by far the highest premium for the grade. April OSP for Arab medium and Arab heavy crude in Asia is also at an all-time high.

Prices are higher than expected, but (I can understand) Saudi mentality, rival grades like Murban crude from Abu Dhabi were also at record levels, said a trader.

Crude prices reached $130 per barrel in early trade on Monday. This is the highest ever price since 2012.

The increase comes after Russian President Vladimir Putin threatened Russia to attack selected areas of Ukraine.

Today is the 12th day of Russia’s invasion of Ukraine. A temporary ceasefire between the two neighboring countries failed after two rounds of talks, as both sides blamed each other for the crisis.

Energy markets have been in turmoil ever since Russia feared an invasion of Ukraine.

Meanwhile, Libya’s national oil company said an armed group had closed two important oil fields, putting oil prices under more pressure.

Saudi Arabia will increase the price of crude oil: The move of oil shook the US stock market, saw a severe decline.

Wall Street saw its biggest fall in more than a year on Monday as another jump in oil prices raised the risk of inflation on the global economy.

The S&P 500 fell 3%, its biggest drop in 16 months after US oil prices rose to $130 a barrel overnight amid the prospect of the US imposing sanctions on oil imports from Russia.

Taking cues from oil’s move, stocks across the world also declined at the start of the day.