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Wednesday 24th April 2024,
Hope for Nigeria

Saudi Aramco hikes oil prices amid rally

Saudi Aramco hikes oil prices amid rally

As oil prices continue to rally in the global oil market, Saudi Aramco has raised its official selling price for crude exported to Asia, the United States, and Europe.

The state firm’s flagship Arab Light cargos for March was raised up by $0.60 per barrel to a total $2.80 per barrel premium over its regular benchmark, reports said Monday afternoon.

According to Bloomberg, the increase represents the highest price for Arab Light since March 2020, before the coronavirus pandemic struck and disrupted global supply and prices.

On Monday, Brent crude touched $94 per barrel in Asian trading, while the West Texas Intermediate traded at over $92 per barrel for the first time since 2014.

Oil prices have rallied significantly in recent weeks, with analysts projecting that it could hit the $100 per barrel mark soon. Since the start of 2022, crude oil benchmarks have gained about 20 percent.

But reports claimed that the United States and Iran might be nearing a deal on Iran’s nuclear program and U.S. sanctions, with possible effect on fluctuating oil prices.

Although State Department officials have cautioned against premature optimism, analysts fear that the lifting of Iran sanctions may result in higher supplies and price disruption.

Meanwhile, market sentiment remains bullish because of the tight supply situation after OPEC+ at its meeting last week decided to stick to its original output addition plan despite growing demand.

“The market tone remained bullish, with investment bankers predicting Brent hitting $100 a barrel and global supply continuing to be tight with OPEC+ not reaching their output targets and the United States not raising output much,” an analyst with Japanese Fujitomi Securities told Reuters on Monday.

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