Saudi Arabia Raises Prices of Oil Bound for Asia in May, Expecting Particularly Robust Demand from China

Saudi Arabia, the world's largest oil exporter, raised the official selling price (OSP) of oil to be sold to Asia in May on Wednesday. This move came just a few days after OPEC+ members, led by Saudi Arabia, collectively announced production cuts.

Saudi Aramco, the state-owned oil company, has reportedly raised the price of its flagship Arabian Light crude to be exported to Asia in May by￠30 per barrel from April, at a premium of $2.8/barrel to the regional benchmark Dubai/Oman crude. This marked the third consecutive month of price hike.

Analysts believe that Saudi Arabia's move to increase the price of crude oil sold to Asia shows that they are still optimistic about the demand for crude oil in the Asian region.