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Oil Hovers Around $120 Per Barrel After Saudi Raises Crude Prices.

London, Monday, 6 June 2022

On Monday, WTI crude futures soared above $120 per barrel as Saudi Arabia boosted pricing for its petroleum sales in July, underlining limited global supplies despite OPEC+ agreeing to increase output over the following two months. Saudi Arabia increased the official selling price of its trademark Arab light oil intended for its primary Asian market and northwest Europe, while keeping the premium on barrels bound for the United States unchanged. Monday's gains came after OPEC+ opted to increase output by 648,000 barrels per day in July and August, or 50 percent more than previously planned.

Markets, on the other hand, have continued to mistrust the group's capacity to meet demand as numerous member countries struggle to increase output at a time when demand in the US is surging due to peak driving season and China is easing Covid lockdowns.

Meanwhile, traders weighed allegations that the United States was considering releasing more sanctioned Iranian and Venezuelan crude onto global markets to compensate for Russian petroleum.

(Report by: The Decision Maker - Middle East editors)


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