Oil gains as Saudi Arabia raises selling prices to Asia
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The news: Global oil prices lifted after dropping to a seven-week low last week, as Saudi Arabia increased selling prices to Asia for the third month in a row.
The numbers: Brent crude futures rose to over USD83 ($125.5) a barrel after lowering more than 7% last week, according to Bloomberg. West Texas Intermediate was around $78.
State-owned oil company Saudi Aramco raised June's official selling price of its flagship Arab Light grade by 90 US cents to USD2.90 a barrel above benchmark prices. That compares with an increase of 60 US cents forecast in a Bloomberg survey.
In the local market, shares in oil and gas majors remained largely flat, in line with the broader energy sector.
The context: Saudi Arabia's price hike reflects the nation's aim to keep the market tight, as easing tensions in the Middle East and a softening outlook for US demand extended recent declines in oil prices.
As well as imposing a higher-than-expected price increase for Asia, Saudi Arabia also lifted selling prices to Europe, while rates for the US were largely steady.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are widely expected to extend their output curbs into the second half of 2024 when they meet in June.
