Saudi Aramco hikes September oil prices for Asia

Global energy giant Saudi Arabian Oil Co. has raised its crude prices to Asia for September after announcing an extension of its voluntary production cut for the next month, reported Al-Ekhbariya.

The company increased the official selling price for September Arab light crude to Asia by 30 cents a barrel from August to $3.50 a barrel over the Oman/Dubai average.

Saudi Aramco also raised the official selling price to Europe by $2 a barrel to $5.80 for September versus ICE Brent, while prices to North America remained unchanged at $7.25 versus Argus Sour Crude Index.

The energy firm also set the official selling price for Arab Light crude for the Euro-Mediterranean region for September at $4.50 above the cost of Brent.

Earlier on Aug. 3, Saudi Arabia announced its decision to extend the voluntary oil output cut of 1 million barrels per day through September.

According to a Saudi Press Agency report, the Kingdom’s production for September 2023 will be approximately 9 million bpd after the output cut.

The SPA report added that this cut is in addition to the voluntary amount previously announced by the Kingdom in April 2023, which extends until the end of December 2024.

During its last policy meeting in June, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, had agreed on a deal to limit supply into 2024. Saudi Arabia pledged a voluntary production cut for July, which the Kingdom later extended until August.

OPEC+, which pumps about 40 percent of the world’s crude, has cut its output target by 3.66 million bpd, amounting to 3.6 percent of global demand.