Oil in Global Economy Series: Tight supplies amid higher demand pushes Saudi to increase oil price for Asian customers

Saudi Arabia’s state-owned oil-exporting giant Saudi Aramco announced on Wednesday that it is increasing prices for all of its crude grades to be sold to Asian customers. Aramco raised the price of its one of the most popular grades, Arab light by 70 cents $1.9 per barrel premium to Oman/Dubai crude. The premiums are far higher for other crude grades. Aramco hiked the price for Arab Super Light by $1.20/barrel from May to a premium of $6.30/barrel over the average of Oman/Dubai in June. Arab Extra Light grade price got increased by 90 cents/barrel from May to a premium of $3.25/barrel in June to Oman/Dubai crude.

The higher oil demand from the Asian region is once again making the crude oil market in the region a sellers’ market. The latest data show, China, which is already world’s largest importer of crude, saw oil products demand increased by 6 percent in the first quarter.