By Giulia Petroni
Top oil exporter Saudi Arabia raised the June price for its flagship Arab Light crude to Asian customers for the third consecutive month, signaling confidence in the demand outlook.
State-owned oil giant Saudi Arabian Oil Co., known as Aramco, set its official selling price for June loadings of Arab Light to Asia at $2.90 a barrel over the Oman/Dubai average, from $2 a barrel in May. Prices for other lighter and heavier crude grades to Asia were also raised.
Looking at other importing regions, the oil producer increased its June prices for all grades for customers in northwest Europe and the Mediterranean, but not to the U.S.
"The June OSPs [official selling prices] show that Saudi is fully committed to its ambition of keeping the market tight and pushing oil prices higher by restricting supply," DNB Markets' senior energy analyst Helge Andre Martinsen says in a note.
Meanwhile, expectations that the Organization of the Petroleum Exporting Countries will extend voluntary output curbs at its next meeting in June are growing among traders and analysts.
Saudi's decision to hike prices, along with fading hopes for an imminent ceasefire and hostage deal in Gaza, pushed crude futures higher in Monday's opening trading session. At 0819 GMT, Brent crude is up 0.8% at $83.63 a barrel and WTI rises 1% to $78.86 a barrel.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
05-06-24 0440ET
