Saudi Arabia may contribute to a record rise in oil prices

Saudi Arabia's national oil company Aramco, which is the world's largest oil exporter, does not rule out the possibility of an increase in the price of its main grade of crude oil to a record level. And this is despite the fact that China – the main buyer of Saudi oil - is struggling with the Covid-19 outbreak. 

According to the average price estimate of five oil refining and trading companies, Saudi Aramco may increase the official selling price of its Arab Light grade oil with shipment in May by $5 per barrel. This would increase the price difference with the Oman-Dubai reference grade to $9.95.

The company itself has not yet given any comments on this, since it usually publishes official prices in the first 5 days of the month.

Recall that the world price of oil jumped to the highest level since 2008 in this quarter after the start of the military special operation in Ukraine. The maximum was marked at $130 per barrel. The current Brent quote is $103.34, WTI oil is trading near $100 per barrel. 

Analysts expect that Saudi Arabia's actions will inevitably lead to the resumption of growth in the oil market. In addition, a reduction in supplies from Russia by 1.5 million barrels per day will also have an impact on prices. At the same time, despite the current situation in the world and huge supply disruptions, OPEC+ members stated that they still do not see the need to adjust production plans.