Saudi Arabia sets record oil prices as Iran sells at premium
Saudi Arabia has raised its official selling price for crude oil to a record level, announcing a premium of $19.5 per barrel above the regional benchmark for its flagship Arab Light grade. This move targets refineries in Asia and reflects the kingdom’s strategy amid strong demand.
Meanwhile, Iranian oil is trading at a premium to the worldwide Brent benchmark for the first time since May 2022. Previously hit by sanctions, Tehran had to sell its oil at a significant discount, but since March – following a relaxation of US sanctions – the price of Iran’s main export grade surpassed Brent by one dollar per barrel.
Recent calculations show Saudi Arabia is now selling half of its oil at nearly double the previous price due to the record-high premium, increasing its revenues compared to earlier periods.
Saudi Aramco, the state-owned oil giant, is one of the world’s largest producers, controlling a significant market share and influencing regional energy prices.
This price hike by Saudi Arabia alongside Iran’s premium prices indicate a recovering oil market and shifting geopolitical supply conditions
Given these developments, further volatility in global oil markets and sustained high prices for key crude grades are expected.
