Saudi oil and gas giant Saudi Aramco unexpectedly raised its selling prices for Asia, sparking global concerns over tight supplies.
The world’s biggest oil exporter raised the official July price of its flagship Arabian light crude by $2.10 a barrel from the June level, Aramco said on Sunday. The rise was much larger than market expectations for a move from $1 to $1.50, Reuters reports, citing market analysts.
The benchmark Brent crude gained 42 cents above $120 a barrel at 09:15 GMT on Monday, while the US benchmark West Texas Intermediate (WTI) rose 35 cents, trading above- above $119 a barrel, approaching a three-month high.
Earlier in June, OPEC member states and allied producers announced plans to increase oil production in the coming months by 648,000 barrels per day instead of the planned monthly increase of 432,000 bpd. . This follows a global price spike in May amid concerns over Western sanctions linked to Ukraine and their potential impact on Russian oil exports.
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Analysts predict oil prices will continue to climb despite OPEC’s promised production increase, which they see as insufficient in the face of soaring summer demand in the United States, the easing of Covid-19 in China and uncertainty over Russian supplies.
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