Oil Up After Saudi Arabia Hikes Crude Prices for Asia, U.S.

© Reuters.

By Gina Lee – Oil was up Monday morning in Asia after Saudi Arabia raised prices for its crude headed to Asia and the U.S. Meanwhile, indirect talks between the U.S. and Iran to revive a 2015 nuclear deal seem to have hit a deadlock.

rose 1.96% to $71.25 by 10:22 PM ET (3:22 AM GMT) and jumped 2.01% to $67.59.

Saudi Arabia, the world’s top oil exporter, raised the selling prices for January crude oil by up 80 cents from the previous month. The increase comes even after the Organization of the Petroleum Exporting Countries and allies (OPEC+) decided to stick to its plan of increasing supplies by 400,000 barrels per day in January at its meeting last week.

Saudi Aramco (SE:) raised its key Arab Light grade for Asian customers by 60 cents from December to $3.30 a barrel above a benchmark, it said in a statement. Chief Executive Officer Amin Nasser said last week that he was “very optimistic” about demand and that the market had overreacted to the new omicron COVID-19 variant.

Uncertainty about the likelihood of Iranian oil supplies also gave the black liquid a boost. Although indirect talks between the U.S. and Iran to revive the nuclear deal broke off last week, they are expected to resume in the middle of this week.

Meanwhile, International Monetary Fund managing director Kristalina Georgieva said that the institution will likely lower its global economic growth estimates due to omicron. Omicron has already spread to around a third of U.S. states as of Sunday, and investors continue to monitor its impact on fuel demand.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.