Saudi Arabia has decided to raise crude oil prices for its Asian buyers in September after extending its voluntary production cut by an additional month.
State oil giant Aramco said it would raise the official selling price of its Arab light crude oil to Asia for September delivery by 30 cents per barrel from August to $3.50 above the benchmark Oman/Dubai average.
The official selling price to Europe was hiked by $2 per barrel to $5.80 per barrel above Brent crude for September delivery, while the price to North America remained unchanged at $7.25 per barrel over the U.S. Argus Sour Crude index.
Saudi Arabia announced last Thursday that its voluntary production cut of 1 million barrels per day would continue through September, adding that it could be extended further or increased.
As a result, Saudi oil output will remain at around 9 million barrels per day in September.
The majority of the oil price hikes will benefit Asian buyers, followed by European customers. Crude prices to the U.S. were kept steady.
The decision to raise prices comes after the recent recovery in oil markets, with benchmark crude futures climbing over $100 per barrel amid tight supply. The Saudi production cuts have helped support higher prices.
