Saudi Arabia increased the price of its oil

Saudi Arabia, the world’s largest oil exporter, raised the price of its benchmark oil for Asian buyers for the first time in six months amid expectations of improved oil demand, particularly from China, according to the International Economic Group of Fars News Agency, quoted by Reuters.

Saudi Aramco Company announced that the official price of light oil in this country for sale to Asian customers in March increased by 20 cents compared to February and reached 2 dollars higher than the Oman/Dubai index.

“The official Saudi oil price was completely unexpected,” said a Singapore-based trader. “I think it shows that Saudi Arabia is seeing increasing demand for oil.”

The International Energy Agency predicts that half of the growth in global oil demand this year will come from China, where IEA chief Birol said demand for jet fuel is rising.

Analysts and traders have predicted that the demand for Chinese oil will grow from March along with the economic recovery.

Saudi Arabia has reduced its official super light price by $1.30 compared to February and reached $2.25 above the Oman/Dubai index. But the price of heavy and medium oil has increased by 50 cents compared to February, which is $1.60 higher than the Oman/Dubai price index.

Analysts had expected Saudi Arabia to cut its oil price by 30 cents for March, and this price increase has surprised them.

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