Why Saudi Arabia Hiked Oil Prices So Aggressively

Why Saudi Arabia Hiked Oil Prices So Aggressively

The failure of the OPEC+ talks and the subsequent (albeit gradual) rapprochement of the sides coincided with Middle Eastern NOCs setting their August 2021 official selling prices. The connection between the OPEC+ talks and Saudi Arabia’s expectations was visible in that Saudi Aramco did not issue its official prices up until the last point, publishing them only when the Vienna meeting was definitely and certifiably called off. The delay of Saudi Arabia’s month-on-month hikes only underscores the intent; by hiking August prices across all continents, in most cases beyond the general market’s anticipations, Aramco put across a fairly straightforward message that it does not want the collective OPEC+ action to halt and it will not ramp up production beyond its quota. Other national oil companies followed suit, to varying degrees, and now, with the OPEC+ deal alive and kicking again, it all made perfect sense to do so.