Saudi Arabia hikes oil prices for Asia

Weekend news from Bloomberg suggests Saudi Arabia’s inflated oil price for Asian markets for the second consecutive month. After raising the prices of the benchmark Arab Light grade for the region by $0.40 in March, Aramco, the Saudi state energy firm, will raise the key Arab Light grade for the region by 40 cents from April to $1.80 per barrel above the benchmark, per the news.

“The kingdom’s confidence in the region’s economic recovery,” could be found in the news as a possible catalyst behind the move.

“Prices for Asia have been above those for Europe and the U.S. for several months, partly due to energy demand in the latter two recovering more slowly from the coronavirus pandemic,” the news said further.

Market reaction

After Friday’s lackluster trading, due to the Good Friday holidays, oil prices are yet to kick-start the week. However, the recent consolidation around $60.00-61.00 seems to favor the WTI bulls who may benefit from the stated news.