Russian Oil Not Enough To Keep Saudi Oil Prices To Asia At Bay

With the Ukrainian War pushing oil prices up worldwide, Saudi Arabia is contemplating a major price hike in oil prices for the Asian markets.

Saudi Aramco may raise the official selling price of its key Arab Light crude by $5 a barrel to Asia for May-loading cargoes, according to the median estimate in a Bloomberg survey of five refiners and traders. That would increase the overall differential to $9.95 above the Oman-Dubai benchmark, which would be the widest since Bloomberg began compiling the data in 2000.

These price hikes are coming despite the likely negative impact on oil demand from China’s latest round of COVID-19 lockdowns, which also indicates China is not shifting significant amounts of its oil purchases to Russia. China certainly is getting no benefit from its presumed closer relationship with Russia.