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:

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.

Five employees injured in an explosion at the Pascagoula refinery are suing Chevron for negligence, seeking significant compensation and alleging major breaches of safety regulations.
South Korea and Japan are reinforcing coordination on strategic stocks and oil logistics as growing dependence on Gulf imports and geopolitical tensions affect the Asian market.
Sonatrach continues to assess underexploited oil and gas areas with the support of Sinopec, following a gradual strategy to strengthen its position on the regional energy market.
Venezuelan oil group PDVSA is mobilising to restart export operations under conditions similar to previous US licences, as Washington prepares to again authorise its main partners to operate.
Two separate strikes in the Vaca Muerta region threaten to disrupt oil and gas production after historic records, with unions protesting layoffs and unpaid wages in a rapidly expanding sector.
US refiner Phillips 66 posted quarterly earnings above expectations, driven by high utilisation rates and lower maintenance costs across its facilities.
The advisory opinion issued by the International Court of Justice increases legal exposure for states and companies involved in the licensing or expansion of oil and gas projects, according to several international law experts.
US oil company Chevron has received new approval from American authorities to relaunch its operations in Venezuela, halted since May following the revocation of its licence under the Trump administration.
Kazakhstan adopts an ambitious roadmap to develop its refining and petrochemical industry, targeting 30% exports and $5bn in investments by 2040.
Turkey has officially submitted to Iraq a draft agreement aimed at renewing and expanding their energy cooperation, now including oil, natural gas, petrochemicals and electricity in a context of intensified negotiations.
The Dangote refinery complex in Nigeria is planning a scheduled forty-day shutdown to replace the catalyst and repair the reactor of its gasoline production unit, starting in early December.
Indonesia Energy plans to drill two new wells on the Kruh block in Indonesia before the end of 2025, following a 60% increase in proven reserves thanks to recent seismic campaigns.
CanAsia Energy Corp. confirms it has submitted a bid for oil and gas exploration and production in Thailand, reinforcing its international strategy within a consortium and targeting a block in the 25th onshore round.
The decrease in US commercial crude oil stocks exceeds expectations, driven by a sharp increase in exports and higher refinery activity, while domestic production shows a slight decline.
Pacific Petroleum and VCP Operating finalise the $9.65mn acquisition of oil assets in Wyoming, backed by a consortium of Japanese institutional investors and a technology innovation programme focused on real-world asset tokenisation.
Repsol's net profit fell to €603mn in the first half, impacted by oil market volatility and a massive power outage that disrupted its activities in Spain and Portugal.
A USD 1.1 billion refinery project in Ndola, signed with Fujian Xiang Xin Corporation, aims to meet Zambia's domestic demand and potentially support regional exports.
The Organization of the Petroleum Exporting Countries (OIES) confirmed its Brent price forecast at 69 USD/b in 2025 and 67 USD/b in 2026, while adjusting its 2025 surplus forecast to 280,000 barrels per day.
PermRock Royalty Trust has declared a monthly distribution of 395,288.31 USD, or 0.032491 USD per trust unit, payable on August 14, 2025, based on production revenues from May 2025.
Portuguese group Galp Energia announced an adjusted net profit of €373 million for Q2 2025, a 25% increase from the previous year, driven by higher hydrocarbon production in Brazil.