Saudi Arabia has increased the price of its flagship crude oil, Arab Light, for Asian markets to a record high. This decision comes amid escalating conflict in the Middle East and the near-total closure of the Strait of Hormuz by Iran, which has significantly disrupted energy markets. Reports Profinance.ru.
State oil producer Saudi Aramco has set the price of Arab Light for next month's delivery at $19.50 above regional benchmarks for Asian refineries. This increase is the largest in history, with Brent crude prices having risen by over 50% due to the ongoing war.
The conflict, now in its sixth week, has altered oil flows as the strategic Strait of Hormuz remains largely closed, blocking the usual route for millions of barrels of oil from Saudi Arabia and other major Gulf producers. In response, Riyadh has redirected much of its supply to the Red Sea port of Yanbu, approximately 1,200 kilometers from the usual shipping port of Ras Tanura.
Despite the logistical challenges, Saudi Aramco's official pricing list still reflects the standard price for loading at Ras Tanura. The company has requested customers to submit separate requests for the quantity of oil they wish to receive from either port, stating that only Arab Light will be supplied from Yanbu.
In addition to the price hike for Arab Light, Aramco has raised prices for all other oil grades destined for Asia by the same amount, even though shipments to the region are affected by the Hormuz closure. Deliveries to other regions, such as the US and Northwest Europe, have also seen record price increases.
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