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Saudi Arabia increased oil prices for the US and lowered for Europe

Саудовская Аравия повысила нефтяные цены для США и опустила для Европы

Saudi Arabia on Sunday, June 5, lowered the price of oil for buyers from Europe, while raising them for the importers of United States. According to The Wall Street Journal.

State oil company Saudi Aramco reduced the price of a barrel of crude oil deliveries in July to 35 cents for the countries of North-Western Europe and 10 cents — for the countries of the Mediterranean region. This decision, as the WSJ notes, is unusual, because usually the demand for oil is increasing in the second half of the year as commissioning after service of oil refineries. In addition, on offer in the oil market affected by shortages of its supplies from countries such as Nigeria.

At the same time, selling prices for a barrel of oil to the United States increased by 20 cents. In addition, the cost of all grades of Saudi oil except Extra Light increased for importers from Asia. As a result, the Brent Arab Light to Asia was about 60 cents more expensive than the benchmark middle East grades Oman and Dubai. In the USA the price of Arab Light is now 55 cents more expensive than at the regional level, according to Bloomberg.

June 2, representatives of States, members of OPEC, including Saudi Arabia, once again failed to agree on limiting crude oil production, which led to a brief decline in oil prices. According to media reports, the decision on the freezing of fuel production was blocked by the Minister of oil of Iran Bijan Namdar Zanganeh.

Chapter Ministry of Russia Sergey Donskoy expressed the view that the inability of OPEC to come to an agreement will not have a significant impact on the dynamics of oil prices.

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