Saudi Arabian oil company Aramco increased its official selling price of Arab Light crude for Asian consumers, signaling a demand recovery in the region, according to international media reports on Thursday.
Aramco increased its crude prices for September shipments by US$0.50 to $9.80 per barrel. Investors interpreted this move as demand strengthening in global markets, which are still subject to supply pressure.
The Saudi price hike came after the decision made by the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to raise production by 100,000 barrels per day (bpd) next month. This was the smallest output rise in the history of OPEC+ producers.
Raising investor sentiment on a recovery in demand, the move also supported crude prices on Thursday.
The price of Brent crude increased to $97.27 a barrel, rising 0.51% after recording more than a 9% decline during the previous trade.
By Sibel Morrow