Saudi Arabia raises oil prices for Asia amid OPEC+ output hike

Saudi Arabia has announced an increase in the price of its flagship crude grade, Arab Light, for Asian buyers next month, signalling strong confidence in the global oil market despite the recent decision by OPEC+ to sharply boost production.

State-owned oil giant Aramco will raise the Arab Light price by $1 per barrel, setting it at $2.20 above the regional benchmark for Asian customers. This move exceeds market expectations, which had forecast a smaller increase of 65 cents per barrel, according to a survey of traders and refiners, Caliber.Az reports via foreign media.

The price adjustment comes just a day after OPEC+ members, led by Saudi Arabia and including partners such as Russia, agreed to a substantial output increase of 548,000 barrels per day in August. The group is accelerating the rollback of voluntary production cuts, aiming to restore 2.2 million barrels per day by the end of the year — a full year ahead of schedule.

The decision to ramp up supply reflects confidence in sustained summer demand for oil and refined products, with refining margins currently robust. However, analysts warn that the faster-than-expected production increases could contribute to an oversupplied market later this year. Wall Street firms including JPMorgan Chase and Goldman Sachs forecast oil prices could dip near $60 per barrel in the fourth quarter amid easing consumption and rising inventories.

Oil prices spiked above $80 per barrel last month amid heightened geopolitical tensions in the Middle East, particularly between Israel and Iran. Yet the market largely shrugged off these risks following a ceasefire announcement by US President Donald Trump and a limitation of US involvement in the conflict, leading Brent crude prices to retreat below $70.

While the summer oil demand remains firm, traders are cautious about the outlook for the remainder of the year as OPEC+ production hikes may outpace consumption growth, potentially driving prices lower.

By Vugar Khalilov