Saudi Arabia, one of the world’s largest oil exporters, is increasing the price of its oil to a record high for Asia, its main market, Dutch news agency ANP wrote on Thursday.
The move by national company Saudi Aramco to raise the price of Saudi oil destined for Asia by 50 cents reflects Riyadh’s confidence in the persistence of strong demand in China, India, South Korea and Japan, its biggest customers, while the oil market is shrinking.
Since the war in Ukraine, Japan and South Korea have abandoned Russian oil to turn to Saudi Arabia, while China remains the largest importer of oil in the world.
The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, announced on Wednesday an almost ridiculous production increase for the month of September.
OPEC Plus, comprising OPEC along with other producers such as Russia and Kazakhstan, will increase its production by 100,000 barrels (159 litres) daily, down from 432,000 extra barrels, then 648,000, in the preceding months.