Saudi Arabia raises all July crude prices to US, European, and Asia

DETAILS:

• Saudi raises July Arab light crude oil OSP to Asia at plus USD 3/bbl vs Oman/Dubai average (prev. plus USD 2.55/bbl).


• Saudi raises July Arab light crude oil OSP to NW Europe at plus USD 3/bbl vs ICE Brent (prev. plus USD 2.10/bbl).


• Saudi raises July Arab light crude oil OSP to US at plus USD 7.15 vs (prev. plus USD 6.25/bbl).

Analysis details (15:31)

• 
  To recap the OPEC+ confab, Saudi Arabia announced it is to unilaterally cut an additional 1mln bpd of oil output for July - which sees its output drop to 9mln bpd. All other OPEC+ producers agreed to extend earlier cuts through to the end of 2024 - OPEC+ agreed for the output target for 2024 to be lowered by 1.4mln bpd and said Russia, Angola and Nigeria are to see significant production cuts in 2024. Meanwhile, the UAE sees a higher baseline for production curbs. Saudi’s Energy Minister said they are not targeting prices and that the extra voluntary cut is a precautionary measure, while they will keep the markets in suspense on whether the additional voluntary cut for July will be extended and will review the extra voluntary cuts every month. Russian Deputy PM Novak added they are seeing oil demand rising and they have the possibility of tweaking decisions. Furthermore, he said they will take decisions so that the oil market is stable, and that Russia is fulfilling its obligations in full, according to Reuters. White House officials meanwhile said they will continue to work with all fuel producers to ensure energy markets support US economic growth, according to Reuters.

05 Jun 2023 - 15:30- EnergyImportant- Source: Newswires