Saudi Arabia, which is the biggest exporter of crude oil in the world, has raised pricing for such a commodity for March sales, as the oil-output cuts by the Organization of Petroleum Exporting Countries (OPEC) and other producers are shoring up oil prices. The increased prices will be applied to all buyers from Asia to the US.
According to a Bloomberg report, Saudi Aramco (formally known as Saudi Arabian Oil Co.) officially increased its Arab Light crude to Asia by 30 cents. This exceeds the regional benchmark of 15 cents per barrel. Also, the company is expected to raise prices for the grade oil to a premium of 10 cents, which exceeds the Oman-Dubai benchmark. Generally, Aramco raised the highest pricing in Northwest Europe and Asia since 2015 and 2014, respectively, with the Mediterranean region also expected to see higher pricing for all grades.
Last year, crude oil saw a 52% jump in annual gain in four years, as the OPEC decided to limit production to get rid of a global supply glut. Praising the efforts of these countries in monitoring the output cuts, Saudi Arabia Energy Minister Khalid Al-Falih said:
“Compliance is great — it’s been really fantastic. Based on everything I know, I think it’s been one of the best agreements we’ve had for a long time.”
The OPEC and other producers, including Russia, have been strictly conforming to their collective pledge to reduce output by as much as 1.8 million barrels per day.