OPEC+ Price Increase When the oil price war started, it was not just the excess supply that was put into the market by Russia and China but the fact that Aramco lowered their pegged pricing to force the market lower. Based on what I've been reading, they're taking an equally aggressive stance in the opposite direction. It appears that they've raised their benchmark crude by between $2.60 and $3.30 over analyst expectations. So for those of you that think the news is entirely baked in, I think you may be surprised tomorrow. DYODD, however I have attached a portion of the yahoo article below.
As per yahoo finance, "OPEC+ chose on Saturday to renew production limits at almost the same level, instead of tapering them as planned at the end of June. Aramco, which typically announces pricing on the fifth day of each month, had delayed its July numbers until after OPEC+ members made their decision.
Saudi Arabia sells its crude at a differential to oil benchmarks, announcing every month the discount or premium it’s charging to global refiners. The so-called official selling prices help set the tone in the physical oil market, where actual barrels change hands.
With China’s demand for crude now rising, the Saudis are raising prices. The month-on-month increase in the official selling price for flagship Arab Light crude to Asia, which accounts for more than half of Saudi oil sales, is the largest in at least 20 years. Aramco raised Arab Light to Asia by $6.10 a barrel to a premium of 20 cents over the benchmark.
It raised July pricing for all grades to Asia by between $5.60 and $7.30 a barrel. That compares with an expected increase of about $4 a barrel, according to a Bloomberg survey of eight traders and refiners."