Saudis raise oil prices for Asia in sign of market strength

Saudis raise oil prices for Asia in sign of market strength

Saudi Arabia raised pricing slightly for its flagship crude oil shipped to Asia, the first sign of strength in the physical market after a month and a half of weakness and falling refining margins.

The increase in November pricing marks a change for the world's biggest exporter, which pared prices in September and October as crude demand stagnated. It suggests the Saudis are confident that OPEC+ supply cuts will buoy the market even as the pandemic continues to crimp demand.

State oil producer Saudi Aramco raised pricing for Arab Light crude for Asia, its largest regional market, by 10 cents a barrel to 40 cents below the benchmark. Aramco had been expected to increase pricing for the grade by as much as 20 cents, according to a Bloomberg survey of traders