Saudi Arabia raised the price of its main oil grade Arab Light for buyers in Asia by $2.50 per barrel, marking the largest increase since August 2022. This was reported by Bloomberg.
For Europe and the Mediterranean, the price of Arab Light increased by $3.50, while for North America it rose by $2.50.
The decision by the state oil company Saudi Aramco is linked to the escalation of the conflict in the Middle East and the effective closure of the Strait of Hormuz, which has disrupted global energy supplies.
According to the agency, the price increase was significantly larger than expected. Traders surveyed before the war with Iran had predicted a price increase of 80 cents.
The closure of the Strait of Hormuz forced Saudi Arabia to redirect supplies through the port of Yanbu on the Red Sea. The capacity of the local pipeline is 5 million barrels per day, which allows for some compensation of the export restrictions.
Due to supply disruptions, refineries in the region are beginning to cut production, and global prices for heavy, sulfur-rich oil have surged. This week, American Mars Blend and Northern European Johan Sverdrup reached record levels since 2020.
Experts warn that such disruptions could further impact global energy markets and push oil prices to new highs.
