Saudi Arabia is making a very important decision regarding oil, after the hint of OPEC by Investing.com

© Reuters.

Investing.com – Only a few days passed for Saudi Arabia, the world’s largest oil exporter, to confirm that it was relentlessly pushing back discipline.

A few days ago, sources said that Saudi Arabia was considering extending its voluntary production cuts of one million barrels per day for a period of one month until the end of April.

The Kingdom offered to extend its voluntary reduction by one million barrels for one month, with the condition that the scheduled restrictions remain for the rest of the producers for another month.

The national oil company Saudi Aramco (SE 🙂 said in a statement on Sunday that it raised the official selling price for its Arab Light crude to Asia in April.

To become a premium of $ 1.40 a barrel above the Oman / Dubai average, an increase of $ 0.40 compared to March.

It is noteworthy that China’s imports of crude oil reached 89.57 million tons in the first two months of 2021, an increase of 4.1% year-on-year and 9.5%.

This is thanks to strong fuel demand and expansion of the country’s refining capacity.

January and February oil shipments amounted to 11.08 million barrels per day, and China is one of the largest importers of Saudi oil.

Aramco, the world’s largest oil producer, said it had priced Arab Light crude oil sold to northwest Europe at a discount of $ 2.20 a barrel for Brent on the Intercontinental Exchange, down $ 0.50 from March.

The price of Arab crude to the United States was set at $ 0.95 a barrel, above the Argus Crude Oil Index, which is high in sulfur, an increase of $ 0.10 compared to the previous month.

The Kingdom aims, through the voluntary reduction, to ensure an alleviation of the state of oversupply in international markets, or an increase of 500 thousand barrels per day, but with the end of its voluntary reduction in the event that the rest of the producers insist on raising production.

Prince Abdulaziz bin Salman, Saudi Minister of Energy, called for caution and vigilance regarding the energy market, pointing out that the cuts made by Saudi Arabia and the “OPEC +” alliance have contributed to accelerating the balance in the market.

By the end of Friday’s trading, it rose by more than 3.8% to $ 66.3 a barrel, which is the highest since October 2018.

While it increased to its highest level since May 2019, bringing the price per barrel to levels of $ 69.7.

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