Saudi Arabia has increased the price of its primary crude oil grade sold to Asia to a record high. This move comes as Iran has nearly closed the Strait of Hormuz, disrupting regional energy flows, while the uncertain duration of the conflict is causing significant market volatility.
According to a pricing list, state-owned oil producer Saudi Aramco will raise the price of its flagship Arab Light crude for Asian refiners in May, setting it at a premium of $19.50 per barrel over the benchmark. This figure is lower than the $40 per barrel premium expected by traders and refiners surveyed by Bloomberg.
The war involving the United States and Israel against Iran has disrupted global energy markets. Iran has effectively shut down the critical Strait of Hormuz, obstructing energy supplies exported by its neighbors through the Persian Gulf. Brent crude has surged by more than 50%, leading to sharp increases in fuel prices across the United States, Europe, and Asia.
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