On Monday, oil prices rose after Saudi Arabia’s state-owned oil company, Aramco, raised its official selling price for its crude, indicating that demand remains strong despite tighter supplies.
Brent crude was up 90 cents or 1.1 percent, at $83.64 a barrel, after falling nearly 2 percent last week. US oil rose 87 cents or 1.1 percent, to $82.14 after falling nearly 3 percent through Friday.
Saudi Aramco raised its official selling price for Arab light crude in Asia to $2.70 per barrel and Oman/Dubai crude up $1.40 from earlier this month.
Aramco’s move indicates that ‘demand remains strong’ as OPEC and other major oil exporters keep supply under control, an ANZ Research revealed.
Last week, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to stick to their plan to increase oil output by 400,000 barrels per day starting in December.
US President Joe Biden had urged OPEC and its allies (known as OPEC+) to increase production in order to keep prices from rising, and said on Saturday that his administration has ‘other tools’ to deal with the higher price of oil.
In other news, China’s oil imports fell to their lowest level in three years in October, as state-owned refiners held off on purchases due to higher prices, while independent refiners were limited by quotas for bringing in crude.
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