Saudis raise crude prices to Asia, US as OPEC+ extends cuts

Saudis raise crude prices to Asia, US as OPEC+ extends cuts

Saudi Arabia raised pricing for its crude for shipment to Asia and the US next month after OPEC+ extended oil supply constraints, pointing to a tightening physical market.

The world's biggest crude exporter is boosting April pricing for crude exports eastwards to the highest levels since just before the Saudis unleashed a brief price and supply war a year ago. After maintaining prices to Asia at an eight-month high for the past two months, the premium for Light crude rose to the highest since March 2020. It suggests the Saudis see demand growth continuing even after Thursday's shock OPEC+ decision to keep oil supply largely unchanged sent Brent crude higher.

State oil producer Saudi Aramco increased pricing for Arab Light crude for Asia, its largest regional market, by 40 cents a barrel to $1.40 more than the benchmark. Ahead of last week's OPEC+ surprise, Aramco had been expected to keep pricing for the grade unchanged, according to a Bloomberg survey of traders and refiners.

Aramco raised all other pricing to Asia, except for its Heavy crude which remained unchanged.

The Organisation of Petroleum Exporting Countries and allies including Russia decided at a meeting on March 4 that they would be sticking with the output