Saudi Arabia on Thursday announce Record high selling prices of crude oil to Asian buyers. The significantly higher increase of 50 cents a barrel was less than some expectations, which had forecast a rise of up to $1.50 a barrel.
Bloomberg News Supposedly The Saudis kept their Asian prices high to fifty cents because the demand for oil from the US fell unexpectedly due to lower summer driving. In fact, the latest surveys show that Americans drive less cars than they did at the height of the Wuhan coronavirus pandemic in 2020.
Saudi Aramco, the kingdom’s national oil company, also raised US prices by fifty cents a barrel, as part of a humiliating rebuke to the Biden administration’s request to increase production to reduce US pump prices. The Saudis increased production with one of the smallest profit margins in Aramco’s history and raised prices.
Asia is Saudi Arabia’s largest oil market, with the four largest customers being China, India, South Korea and Japan. China and India are the world’s fastest growing fossil fuel markets, Accounting Most of the world’s growing demand for energy.
Saudi oil prices for Asia were increasing It has been fairly steady since the Russian invasion of Ukraine, in part because some of Russia’s regional oil customers have become wary of doing business with it. Asian buyers were willing to absorb the price increases as their refineries post record profits.
Meanwhile, Russia’s oil business is doing well despite these reluctant buyers because China and India have boundless appetites for Russian crude. As a vital strategic ally of the United States, India understands that the United States is unlikely to interfere with its purchases of heavily discounted Russian oil.