Saudi Arabia hikes its oil prices as supply cuts extended

Saudi Arabia hikes its oil prices as supply cuts extended

Saudi Arabia issued big price increases for its crude to Europe and the Mediterranean, while also unexpectedly lifting the cost of barrels to Asia, a move that risks stifling demand for the kingdom’s barrels.

State-owned Saudi Aramco raised the prices of all grades to the US, northwest Europe and the Mediterranean, compared with July, according to a price list seen by Bloomberg. It also boosted its Arab Light prices to the key demand region of Asia, contrary to expectations in a Bloomberg survey.

Official selling prices to Europe were all lifted by 80 cents a barrel, vastly outpacing increases to the US and Asia. Meanwhile, Arab Medium crude in the Mediterranean was set at a record premium of $3.20 a barrel, while Arab Light was the highest since September at $3.50 above its benchmark.