Saudi Arabia Raises September Oil Prices for Asia Amid Tight Supply

Saudi Arabia has raised its official selling prices (OSPs) for crude oil deliveries to Asia in September for the second consecutive month, reflecting strong demand and tight supply. The flagship Arab Light grade was increased by $1 to a premium of $3.20 per barrel above the Oman/Dubai benchmark, with other grades such as Arab Extra Light, Medium, and Heavy also seeing price hikes ranging from $0.70 to $1.20 per barrel. This price adjustment is influenced by robust demand in Asia, particularly from India, which may seek alternatives amid U.S. tariffs on Russian oil imports. Despite the OPEC+ decision to increase output by 547,000 barrels per day in September, market conditions remain tight, supporting higher prices. Saudi Aramco’s pricing decisions impact around 9 million barrels per day of crude exports to Asia and set a benchmark for other producers in the region. Additionally, prices were raised for U.S. buyers but lowered for European customers, indicating regional demand dynamics.