Saudi Arabia may raise oil prices for Asia to 4-month high — Reuters

Saudi Arabia is expected to hike oil prices for Asian buyers to a four-month high in August. Reuters reports that the move comes as demand for term supplies surges and summer fuel consumption peaks.

According to informed sources, Saudi Arabia's official selling price (OSP) for Arab Light crude in August is set to climb by 50–80 cents, reaching a premium of $1.7–$2.0 per barrel. Reuters reports that other grades—Arab Extra Light, Arab Medium and Arab Heavy—may also see price hikes of 50–60 cents.

Most surveyed companies expect August OSPs for Arab Light crude to track current market prices. However, one respondent noted Saudi crude may instead be in line with Oman due to high demand for term supplies. Asian refiners have already asked for additional supply volumes loading in August and September from Middle Eastern producers.

However, OPEC+'s potential 411,000 barrel per day production increase in August is expected to cap price gains. Market sources tell Reuters that Saudi Aramco may announce its OSPs following the group's July 6 meeting.