Dhaka, Oct 06 (V7N): Saudi Arabia has raised the price of its key oil product for Asian buyers, reflecting increased volatility in the global crude market due to rising tensions in the Middle East.

According to a price list obtained by Bloomberg, Saudi Aramco, the state oil producer, has hiked the official selling price for its flagship Arab Light crude by 90 cents, now trading at a premium of $2.20 per barrel against the regional benchmark for Asian buyers. This increase surpassed expectations, as traders and refiners anticipated a 65-cent hike.

Conversely, Aramco has reduced the price for all grades of oil sold to the US and Europe.

Oil prices have surged since the beginning of October, driven by Iran’s missile strikes on Israel in response to severe Hezbollah leadership losses in Lebanon. Benchmark Brent crude rose more than 8% this week, hovering around $78 per barrel, with markets bracing for potential Israeli retaliation.

Despite ongoing regional risks, oil supplies have not been significantly impacted this year, with the market previously more concerned about weakening demand, particularly from China. In response to oversupply fears, OPEC+, led by Saudi Arabia and Russia, decided last month to delay a planned production increase until December.

OPEC+ members who implemented voluntary output cuts have also postponed their plans to ease these reductions in October and November. This delay could see Saudi Arabia continuing to export fewer than 6 million barrels of oil per day, a trend maintained over the past four months.

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