Saudi Aramco, the world’s leading oil exporter, has sharply increased crude prices for March shipments to buyers in Asia.
Demand from China and India is rising as US sanctions disrupt Russian supply.
Aramco raised the official selling price for flagship Arab Light crude by $2.40 to $3.90 per barrel above the Oman/Dubai benchmark average, Saudi Aramco said in a statement on Wednesday.
The oil exporter steeply increased crude prices for March shipments across all other regions as well.
Aramco raised March prices for buyers in northwest Europe and the Mediterranean by $3.20 a barrel for all crude grades, and raised the OSPs for grades it sells to the United States by 10-30 cents a barrel.
The hike in Arab Light price for Asia was broadly in line with expectations with the $2-$2.50 increase forecast in a Reuters survey of three of four Asian refining sources.
On January 10, the administration of former US president Joe Biden imposed fresh sanctions on Russian producers, tankers and insurers, further tightening global oil supply from the world’s second-largest producer and limiting vessel availability.
In response, Chinese and Indian refiners scrambled to secure alternative cargoes, driving spot premiums for Oman and Dubai crude to their highest levels since November 2022.
Opec+, which accounts for nearly half of global oil production, decided in early December to delay the start of planned output increases by three months, pushing them to April.
The group also extended the full unwinding of its production cuts by a year, now set to conclude at the end of 2026.
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