By Yusuf Khan
Saudi Arabia raised its November prices for crude oil sales to buyers in Europe and Asia, after saying earlier this week that it would continue to cut output through to the end of the year by 1 million barrels a day.
Saudi Arabian Oil Co., commonly known as Saudi Aramco, raised prices for its benchmark Arab light crude by $1.50 a barrel for buyers in Europe, by $0.40 in Asia and by $1.90 in the Mediterranean.
The price the state oil giant sets is seen as a barometer for how Saudi Arabia views the outlook for oil demand, and raising prices is typically taken as an indication of optimism.
The kingdom on Wednesday reaffirmed its intention to cut oil supply through to the end of the year, with the International Energy Agency and OPEC forecasting market deficits on the back of those supply cuts, along with Russia’s too.
U.S. prices were unchanged from October but still mean that buyers in the U.S. and other parts of North America will pay a premium of $7.45 a barrel premium for Saudi crude over the Argus Sour Crude Index. Buyers in Asia meanwhile will be paying an extra $4 a barrel over the average of the Oman and Dubai oil prices benchmarks.
European buyers will pay a $7.20 premium over Brent prices while Mediterranean buyers will pay a $6.30 a barrel premium over Brent.
Write to Yusuf Khan at [email protected]
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