Saudi Arabia has decided to raise the price of oil for European and Asian buyers. This was reported by The Moscow Times here.
It has been reported that the price of the main grade Arab Light oil delivered to Asia will be increased by $2.4 per barrel starting from March. This is the highest increase since August 2022, when the price of a barrel of the main grade Brent oil was around $100 following the Russian invasion.
According to a report by Saudi Aramco, as a result, a barrel of Arab Light will be $3.9 more expensive compared to Oman/Dubai oils. In March, the price for European companies wishing to purchase oil from Saudi will go up by $3.2 per barrel. However, the price increase for US buyers will be minimal — only $0.1–$0.3.
Reportedly, after the announcement from Saudi Aramco, oil prices shifted from a decline to an increase: the US's WTI grade rose approximately by 0.4 percent, respectively making up $75 and $71.4 per barrel.
The market is facing negative expectations due to a potential trade war that could be initiated by US President Trump. This war could slow down global economic growth. Moreover, news has spread that Trump has ordered his administration to intensify economic pressure on Iran. However, this did not stop the decline in prices.
Trump asked Saudi to reduce oil prices to stop the war in Ukraine
At the end of January, Donald Trump announced his intention to ask Saudi Arabia and OPEC to lower oil prices, wondering why they “had not done this before the US elections.”
“I ask Saudi Arabia and OPEC to lower oil prices. Honestly, I am surprised they didn’t do it before the election. If the price goes down, the Russia and Ukraine war would end immediately. Current prices are too high for this war to continue. We need to lower oil prices. You can stop this war. They should have done this already,” Trump said.
Saudi Arabia did not respond to Trump regarding the oil issue. However, according to Faisal Alibrahim, the Saudi Minister of Economy and Planning, the demand for oil in the global market is increasing. Therefore, Saudi Arabia believes it is necessary to efficiently meet this demand.
