The national oil company of Saudi Arabia Saudi Aramco raises prices for consumers, setting the tone for the whole market.
© Ilya Pitalev/RIA Novosti
Saudi state company Saudi Aramco has extended the business in media reports of his intention to raise oil prices for consumers in Asia and Europe. Analysts are wondering whether the refusal of the Saudis from dumping on the oil market maneuver ahead of the meeting of the countries-exporters of oil in Russia March 20 or this long-term trend.
“The price of light crude oil Arab Light rose by $0.25 per barrel, that means a reduction of the previously existing discount from $1 per barrel to $0,75. It is also expected to increase in the price of the two other grades of oil in the range from 25 to 35 cents,” writes the Financial Times.
The publication claims that the rise in the price of oil is associated with calculations Saudi Aramco on improving demand. Also noted that Asia is the largest market for Saudi Arabia, this region accounts for more than half of its crude oil exports. Riyadh seeks to protect its market share from growing competition from Colombia and Nigeria.
In February, the oil Minister of Saudi Arabia Ali al-Naimi said that the producing countries do not plan to cut oil production to reduce oversupply. After that, most countries agreed to freeze production at the current level, but Iran refused to accede to the agreement. In Tehran stated that after cancellation of sanctions of the West are going to win back the lost share of the oil market and therefore will increase production and exports.