(Bloomberg) -- Saudi Arabia raised oil prices for buyers in Asia next month, in a sign the world’s largest crude exporter sees tighter supply in its largest market after OPEC+ recently delayed plans to ramp up production.
State oil producer Saudi Aramco set the price for its main Arab Light crude grade at a premium of $1.50 a barrel to the regional benchmark for February, the company said. That’s an increase of 60 cents, compared with a 10-cent hike forecast in a Bloomberg survey of traders and refiners.
Aramco boosted prices of its flagship grade following cuts in the two previous months as refiners were facing weak margins, raising fears of a persistent surplus of crude. OPEC+ last month delayed bringing barrels back to the market, constraining supply of the type of heavier and more sour crude that many Asian refiners use.
The continued cuts and weaker supply from Iran and Russia helped strengthen prices for some Middle Eastern oil grades in the final week of December.
Still, global benchmark oil prices in London remain locked in a range around $75 a barrel after slipping about 3% last year as sluggish demand growth, especially in China.
Aramco also raised prices for other grades sold to buyers in Asia by between 40 cents and 60 cents a barrel, according to the company. It boosted pricing for all grades to the Mediterranean region and northwestern Europe, while cutting to the US.
--With assistance from Alfred Cang.
(Updates with Middle Eastern oil prices in the 4th paragraph.)
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