Saudi Shift From Price War Has Asia Oil Buyers Stewing Over Rise
- Aramco unexpectedly raised June prices for most grades to Asia
- Some buyers may consider reducing their nominations: traders
Oil storage tank at the Juaymah tank farm at Saudi Aramco's Ras Tanura oil refinery.
Photographer: Simon Dawson/Bloomberg
This article is for subscribers only.
Saudi Arabia’s boost to prices of most of its oil is signaling an end to a destructive price war, but it’s left Asian buyers less than impressed.
The increase was a surprise to Asian customers, which were expecting another cut to prices, according to ten traders surveyed by Bloomberg, just as pockets of demand start to emerge across the region including from the biggest consumer -- China. Buyers were left disappointed when the kingdom hiked the cost of its crude for four of the five grades sold to Asia, prompting some to consider purchasing slightly less from OPEC’s top exporter, traders said.