Saudi Aramco Sharply Raises Crude Prices for Asia in August

Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Saudi Arabian Oil Company (Saudi Aramco) has announced a significant rise in its Official Selling Prices (OSPs) for oil shipments destined for Asian markets for August 2024. The benchmark Arab Light crude oil price thus increased by 1 US dollar per barrel compared to the previous month, reaching a differential of +2.20 USD per barrel. This increase, which exceeds the expectations of several market observers, also includes substantial hikes for other grades, such as Arab Extra Light (+1.30 USD), Arab Super Light (+1.20 USD), as well as heavier grades like Arab Medium (+1 USD) and Arab Heavy (+0.90 USD). These revised rates may notably alter purchasing strategies among major Asian refiners.

OPEC+ Quota Increase and Saudi Domestic Demand

This decision follows the announcement by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) of a production increase of 548,000 barrels per day (b/d) for August, including 222,000 b/d allocated exclusively to Saudi Arabia. However, a significant portion of this increase is expected to be absorbed by the Kingdom’s domestic demand, traditionally high during the summer period. Throughout July and August, Saudi Arabia typically uses more crude oil for electricity generation to meet high domestic consumption driven by summer temperatures.

Impact of Regional Tensions on Prices

Meanwhile, ongoing geopolitical tensions in the Middle East, particularly related to the conflict between Israel and Iran, are significantly influencing market expectations. These tensions raise concerns about the security of regional oil supplies, indirectly contributing to upward price pressure. Several independent analysts indicate that these geopolitical uncertainties are among the reasons prompting Aramco to adjust its prices more sharply than anticipated.

Impact on Other Markets

Additionally, Saudi Aramco has announced moderate price increases for the North American market, up to +0.40 USD per barrel depending on the crude grade. In contrast, increases targeted at Northwest Europe and the Mediterranean uniformly reach +1.40 USD per barrel for all grades offered. This pricing policy could influence international trade flows, notably prompting certain European buyers to reconsider their sourcing strategies or seek alternatives from other oil producers.

The new US licence granted to Chevron significantly alters financial flows between Venezuela and the United States, affecting the local currency, oil revenues and the country's economic balance.
Three Crown Petroleum reports a steady initial flow rate of 752 barrels of oil equivalent per day from its Irvine 1NH well in the Powder River Basin, marking a key step in its horizontal drilling programme in the Niobrara.
Cenovus Energy adjusts its MEG Energy acquisition offer to $30 per share and signs a voting support agreement with Strathcona Resources, while selling assets worth up to CAD150mn.
Iraq is negotiating a potential revision of its OPEC production limit while maintaining exports at around 3.6 million barrels per day despite significantly higher capacity.
Le Premier ministre hongrois se rendra à Washington pour discuter avec Donald Trump des sanctions américaines contre le pétrole russe, dans un contexte de guerre en Ukraine et de dépendance persistante de la Hongrie aux hydrocarbures russes.
Nigerian tycoon Aliko Dangote plans to expand his refinery’s capacity to 1.4 million barrels per day, reshaping regional energy dynamics through an unmatched private-sector project in Africa.
COOEC has signed a $4bn EPC contract with QatarEnergy to develop the offshore Bul Hanine oil field, marking the largest order ever secured by a Chinese company in the Gulf.
The group terminates commitments for the Odin and Hild rigs in Mexico, initially scheduled through November 2025 and March 2026, due to sanctions affecting an involved counterparty, while reaffirming compliance with applicable international frameworks.
Shell has filed an appeal against the cancellation of its environmental authorisation for Block 5/6/7 off the South African coast, aiming to continue exploration in a geologically strategic offshore zone.
The Greek government has selected a consortium led by Chevron to explore hydrocarbons in four maritime zones in the Ionian Sea and south of Crete, with geophysical surveys scheduled to begin in 2026.
Algerian company Sonatrach has resumed exploration activities in Libya's Ghadames Basin, halted since 2014, as part of a strategic revival of the country's oil sector.
The Indian refiner segments campaigns, strengthens documentary traceability and adjusts contracts to secure certified shipments to the European Union, while redirecting ineligible volumes to Africa and the Americas based on market conditions.
US authorities have authorised a unit at Talen Energy’s Wagner plant in Maryland to operate beyond regulatory limits until the end of 2025 to strengthen grid reliability.
Gran Tierra Energy has signed a crude oil sale agreement with a $200mn prepayment and amended its Colombian credit facility to improve financial flexibility.
Operations at BP’s 440,000 barrel-per-day Whiting refinery have resumed following a temporary shutdown caused by a power outage and a minor fire incident.
The European Union targets a trading subsidiary and a refinery linked to China National Petroleum Corporation, tightening access to financial and insurance services without disrupting pipeline deliveries, with reallocations expected in settlements, insurance, and logistics. —
Viktor Orban says he is working to bypass recent US sanctions targeting Rosneft and Lukoil, underscoring Hungary’s continued reliance on Russian hydrocarbons.
Traceability requirements from the EU (European Union) on fuel origin are reshaping Indian refined flows, with a shift toward Africa and Brazil supported by local premiums and a decline in Russian exports.
U.S. sanctions targeting Rosneft and Lukoil trigger a rebound in oil, while the European Union prepares a clampdown on liquefied natural gas and maritime logistics, with immediate repercussions for markets and Russia’s export chain.
Ten days before COP30, Brazil awarded five offshore oil blocks for over $19mn, confirming its deepwater development strategy despite environmental criticism.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.