Saudi Arabia may increase oil prices amid Russia-Ukraine war
Mar 31, 2022 20:51:15 GMT -5
Post by OmegaMan on Mar 31, 2022 20:51:15 GMT -5
Saudi Arabia may increase oil prices amid Russia-Ukraine war
Thursday, March 31, 2022 by: Ramon Tomey
Tags: Brent futures, chaos, Collapse, crude oil, export ban, Inflation, market crash, oil prices, oil production, oil supply, OPEC, OPEC Reference Basket, panic, petroleum, power, power grid, products, Russia, Russia-Ukraine war, Russian oil, Saudi Arabia, Saudi Aramco, WWIII
This article may contain statements that reflect the opinion of the author
(Natural News) Saudi Arabia may increase the price of its crude oil as the repercussions of the Russia-Ukraine war are felt throughout global markets.
An assessment by Bloomberg found that state-owned petroleum company Saudi Aramco may raise the selling price of its flagship Arab Light crude to $5 a barrel in Asia. The news outlet added that the price increase could apply for oil cargoes scheduled for May 2022. Saudi Arabia is the world’s largest exporter of oil and is a founding member of the Organization of the Petroleum Exporting Countries (OPEC).
The price increase for Arab Light crude came amid a general spike in oil prices in the first quarter of 2022, the highest increase since 2008. The Russia-Ukraine war, which commenced in February, exacerbated high oil prices already lifted by expanding global demand and fast-selling stockpiles.
Meanwhile, Brent futures prices ended the Mar. 29 trading day at almost $113 per barrel. During the early days of the Russia-Ukraine war, prices almost hit $140 – the highest since 2008 – but have subsequently stabilized. (Related: Rising gas prices to hit $7 a gallon if crude oil cost spikes and tension between Russia and Ukraine escalates.)
The onset of the Russia-Ukraine war, the biggest conflict in Europe since World War II, has lowered demand for Russian oil. It has also inadvertently reduced demand for petroleum coming from East Asian suppliers such as Japan and South Korea.
This has proven to be a golden opportunity for Saudi Arabia and other suppliers in the Middle East to fill in the void left by lowered demand for Russian oil. Meanwhile, countries such as China and India have committed to purchasing Moscow’s excess barrels.
Brighteon.TV
Aramco’s announcement of a price hike also comes amid a new outbreak of the Wuhan coronavirus (COVID-19) in China. The world’s top oil importer has imposed lockdowns to curb the virus’s spread as part of its zero-COVID policy.
Given this situation, traders in Asia are closely monitoring the country as it poses a serious risk to oil demand. As it is still unknown how long the COVID-19 lockdowns would remain in place, some energy consultants have already reduced estimates for crude oil consumption in China.
Saudi Arabia, other OPEC nations to discuss production plans
Aramco did not respond to an email from Bloomberg seeking comment over the potential price hike. The state-owned oil firm typically releases official Arab Light prices in the first five days of the month.
Continued at link
Thursday, March 31, 2022 by: Ramon Tomey
Tags: Brent futures, chaos, Collapse, crude oil, export ban, Inflation, market crash, oil prices, oil production, oil supply, OPEC, OPEC Reference Basket, panic, petroleum, power, power grid, products, Russia, Russia-Ukraine war, Russian oil, Saudi Arabia, Saudi Aramco, WWIII
This article may contain statements that reflect the opinion of the author
(Natural News) Saudi Arabia may increase the price of its crude oil as the repercussions of the Russia-Ukraine war are felt throughout global markets.
An assessment by Bloomberg found that state-owned petroleum company Saudi Aramco may raise the selling price of its flagship Arab Light crude to $5 a barrel in Asia. The news outlet added that the price increase could apply for oil cargoes scheduled for May 2022. Saudi Arabia is the world’s largest exporter of oil and is a founding member of the Organization of the Petroleum Exporting Countries (OPEC).
The price increase for Arab Light crude came amid a general spike in oil prices in the first quarter of 2022, the highest increase since 2008. The Russia-Ukraine war, which commenced in February, exacerbated high oil prices already lifted by expanding global demand and fast-selling stockpiles.
Meanwhile, Brent futures prices ended the Mar. 29 trading day at almost $113 per barrel. During the early days of the Russia-Ukraine war, prices almost hit $140 – the highest since 2008 – but have subsequently stabilized. (Related: Rising gas prices to hit $7 a gallon if crude oil cost spikes and tension between Russia and Ukraine escalates.)
The onset of the Russia-Ukraine war, the biggest conflict in Europe since World War II, has lowered demand for Russian oil. It has also inadvertently reduced demand for petroleum coming from East Asian suppliers such as Japan and South Korea.
This has proven to be a golden opportunity for Saudi Arabia and other suppliers in the Middle East to fill in the void left by lowered demand for Russian oil. Meanwhile, countries such as China and India have committed to purchasing Moscow’s excess barrels.
Brighteon.TV
Aramco’s announcement of a price hike also comes amid a new outbreak of the Wuhan coronavirus (COVID-19) in China. The world’s top oil importer has imposed lockdowns to curb the virus’s spread as part of its zero-COVID policy.
Given this situation, traders in Asia are closely monitoring the country as it poses a serious risk to oil demand. As it is still unknown how long the COVID-19 lockdowns would remain in place, some energy consultants have already reduced estimates for crude oil consumption in China.
Saudi Arabia, other OPEC nations to discuss production plans
Aramco did not respond to an email from Bloomberg seeking comment over the potential price hike. The state-owned oil firm typically releases official Arab Light prices in the first five days of the month.
Continued at link